Void Chronicle
  • Home
  • Finance
    • Personal Finance
    • Banking
  • Crypto
  • Energy
  • Markets
  • Medical
  • Political
  • Technology
No Result
View All Result
  • Home
  • Finance
    • Personal Finance
    • Banking
  • Crypto
  • Energy
  • Markets
  • Medical
  • Political
  • Technology
No Result
View All Result
Void Chronicle
No Result
View All Result
Home Banking

Banks Brace for Tougher Rules Under Biden on Consumer Protection, Fair Lending

VC by VC
January 30, 2021
in Banking
0
Banks Brace for Tougher Rules Under Biden on Consumer Protection, Fair Lending
0
SHARES
1
VIEWS
Share on FacebookShare on Twitter

WASHINGTON—After the 2008 monetary disaster, regulatory reform efforts sought to make the system safer. This time, the aim might be to make it fairer.

Consistent with President Biden’s concentrate on serving to minorities and folks with low and average incomes—teams hit hardest by the coronavirus-induced downturn—monetary regulators are anticipated to emphasise racial fairness as they concentrate on client safety and increasing entry to monetary companies.

SHARE YOUR THOUGHTS

What areas or actions do you suppose must be given precedence by the Biden administration’s monetary regulators? Be part of the dialog under.

EA Builder

That will mark a departure from the final time Democrats managed the White Home and Congress in the beginning of the Obama administration. Early efforts then centered on preventing the disaster, adopted by a push to make sure that it might by no means occur once more with the Dodd-Frank Act of 2010, the most sweeping financial legislation in a era.

“Obama checked out how you can make the monetary system steady,” mentioned

Karen Petrou,

head of Federal Monetary Analytics, a regulatory advisory agency. “Biden is , ‘How will we make the banking system simply?’ That’s very completely different.”

In follow, that may translate into more durable guidelines on payday lenders—who cost excessive charges of curiosity on short-term loans—and stronger enforcement of fair-lending necessities, an administration official mentioned. Biden’s group may also push to ascertain a government-backed client credit score agency as a substitute for the businesses that create credit score studies, the official mentioned.

Rohit Chopra, a commissioner on the Federal Commerce Fee, has been nominated to move the Client Monetary Safety Bureau.



Picture:

Alex Edelman/Bloomberg Information

Mr. Biden’s decisions for high regulatory posts spotlight his push to guard shoppers from what some Democrats view as predatory conduct by monetary companies.

Rohit Chopra,

at the moment on the Federal Commerce Fee, is the nominee to move the Client Monetary Safety Bureau. Michael Barr, a former Treasury Division official who helped craft Dodd-Frank and create the CFPB, is said to be the top candidate to steer the Workplace of the Comptroller of the Forex, which oversees nationwide banks comparable to

JPMorgan Chase

& Co. and

Bank of America Corp.

“Whereas the Trump-era regulators weren’t blind to areas like client safety, they weren’t on the high of the listing of their priorities,” mentioned

Daniel Stipano,

a former high legal professional on the Workplace of the Comptroller of the Forex. “They’re going to be again on the high of the listing now.”

On the FTC, Mr. Chopra has repeatedly advocated bolder enforcement actions. In 2019, he and one other Democratic commissioner objected to a settlement by which

Facebook Inc.

agreed to pay $5 billion following a probe into the tech giant’s privacy missteps, contending it wasn’t robust sufficient.

Mr. Chopra is seen as likely to step up enforcement actions on the CFPB, with a concentrate on larger financial penalties and a crackdown on repeat offenders. Actions fell sharply early within the Trump administration earlier than rising once more final yr.

He might also revisit a provision, repealed under the Trump administration, requiring so-called payday lenders to confirm debtors’ incomes to make sure they will afford to repay high-interest, short-term loans. He additionally is anticipated to spice up the facility of the bureau arm centered on honest lending.

Republicans in Congress and bankers, who’ve criticized the CFPB as an instrument of presidency overreach, are cautious of the prospect of yet one more swing of the regulatory pendulum.

“The banking trade wants laws written for years, not election cycles,” mentioned

Richard Hunt,

president and chief govt officer of the Client Bankers Affiliation. “The extra regulators from each events can put politics apart, draft laws with enter from all events and clarify their positions, the extra Individuals can profit from a well-regulated banking trade.”

Client advocates want to the Biden administration to ease lending requirements that tightened in the course of the pandemic, which they are saying has disproportionately harmed minorities who are likely to have decrease credit score scores and fewer money for down funds, mentioned

Mike Calhoun,

president of the Middle for Accountable Lending.

The Biden administration’s concentrate on racial fairness additionally means banks seemingly might be required to lend and make investments extra in low- and moderate-income communities beneath revamped guidelines for the Neighborhood Reinvestment Act. The OCC and different regulators can block mergers and new branches if banks fail to satisfy these necessities.

Banks are unlikely to see additional easing of guidelines. Through the Trump administration, banks noticed some requirements of Dodd-Frank scaled back via laws that elevated a key regulatory threshold at which bigger companies are topic to more durable guidelines.

Then again, Treasury Secretary

Janet Yellen

might transfer to undo Trump administration adjustments that made it harder to topic nonbank monetary companies, comparable to Wall Road cash managers, to heightened supervision.

On local weather change, Ms. Yellen might work with different regulators to require banks to higher assess dangers posed by the affect of local weather change.

“I believe we have to significantly have a look at assessing the danger to the monetary system from local weather change,” Ms. Yellen instructed a Senate panel this month.

Write to Andrew Ackerman at andrew.ackerman@wsj.com and Orla McCaffrey at orla.mccaffrey@wsj.com

Copyright ©2020 Dow Jones & Firm, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8



Source link

VC

VC

Related Posts

Back to school for grades K through 2
Banking

Back to school for grades K through 2

March 8, 2021
Water Supply Flow Testing in Red Bank
Banking

Water Supply Flow Testing in Red Bank

March 7, 2021
Falcon National Bank promotes, adds employees
Banking

Falcon National Bank promotes, adds employees

March 6, 2021
Next Post
It's not too late to make 2021 money resolutions. Here's how to get started | Personal-finance

It's not too late to make 2021 money resolutions. Here's how to get started | Personal-finance

Controversy Over GameStop’s Stock Market Saga Explained | Voice of America

Controversy Over GameStop’s Stock Market Saga Explained | Voice of America

The benefits of cleaner energy [letter] | Letters To The Editor

The benefits of cleaner energy [letter] | Letters To The Editor

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Follow us on Facebook

Recommended

Live: NSW Premier Gladys Berejiklian fighting for political future after Daryl Maguire ICAC bombshell

Live: NSW Premier Gladys Berejiklian fighting for political future after Daryl Maguire ICAC bombshell

5 months ago
LD Brown’s positive energy is the lifeblood of the Cowboy locker room

LD Brown’s positive energy is the lifeblood of the Cowboy locker room

3 months ago
Energy company donates thousands of dollars to Wyoming County organizations

Energy company donates thousands of dollars to Wyoming County organizations

3 months ago
Bithumb Ranks First in Korea and Third in the World in Crypto Trading Volume

Bithumb Ranks First in Korea and Third in the World in Crypto Trading Volume

6 months ago

Categories

  • Banking
  • Crypto
  • Energy
  • Finance
  • Markets
  • Medical
  • Personal Finance
  • Political
  • Technology
  • Uncategorized
No Result
View All Result

Subscribe to Our Newsletter

Highlights

New Jersey Physician and Medical Practice Agree to Pay $106,255 to Resolve False Claims Act Allegations | USAO-NJ

Ripple CEO calls for clearer crypto regulations following SEC lawsuit

Essential Politics: Newsom’s big speech as the recall looms

Why Units of Energy Transfer Rallied More Than 20% in February

China’s Bond Market Faces Demand Test as Refinancing Surge Looms

3 Reasons to Make Roth IRA Conversions Early in Retirement | Personal-finance

Trending

Otsego earns State Compass Award for financial literacy program
Finance

Otsego earns State Compass Award for financial literacy program

by VC
March 9, 2021
0

BOWLING GREEN, Ohio (WTVG) - Otsego Excessive Faculty is being acknowledged by the State of Ohio...

PYMNTS.com

Personal Loan Apps Borrowing Chart Positions

March 8, 2021
Back to school for grades K through 2

Back to school for grades K through 2

March 8, 2021
New Jersey Physician and Medical Practice Agree to Pay $106,255 to Resolve False Claims Act Allegations | USAO-NJ

New Jersey Physician and Medical Practice Agree to Pay $106,255 to Resolve False Claims Act Allegations | USAO-NJ

March 8, 2021
Ripple CEO calls for clearer crypto regulations following SEC lawsuit

Ripple CEO calls for clearer crypto regulations following SEC lawsuit

March 8, 2021

Categories

  • Banking
  • Crypto
  • Energy
  • Finance
  • Markets
  • Medical
  • Personal Finance
  • Political
  • Technology
  • Uncategorized
January 2021
M T W T F S S
 123
45678910
11121314151617
18192021222324
25262728293031
« Dec   Feb »

Recent Posts

  • Otsego earns State Compass Award for financial literacy program
  • Personal Loan Apps Borrowing Chart Positions
  • Back to school for grades K through 2
  • New Jersey Physician and Medical Practice Agree to Pay $106,255 to Resolve False Claims Act Allegations | USAO-NJ
  • Ripple CEO calls for clearer crypto regulations following SEC lawsuit
  • Home
  • Privacy And Policy
  • About Us
  • Contact Us

© 2020 - News Website Voidchronicle.

No Result
View All Result
  • Home
  • Finance
    • Personal Finance
    • Banking
  • Crypto
  • Energy
  • Markets
  • Medical
  • Political
  • Technology

© 2020 - News Website Voidchronicle.