The abuses and reckless practices that caused the Great Recession led to precious few reforms. Only one has real teeth: the Consumer Financial Protection Bureau. Its aim is to police mortgage, student loan and payday lenders to prevent the kinds of behavior exemplified by the likes of Countrywide Financial.
Congressional Republicans have vehemently opposed the agency (so has the “financial services” industry) as adding more regulation to an over-regulated sector, potentially holding back lending and meddling in the free market. They blocked Elizabeth Warren, who championed and started up the bureau, then did the same to President Obama’s next nominee, Richard Cordray. Obama made a recess appointment anyway, and the agency is getting going. Cordray promises to be a vigorous watchdog.
What do you think?
Read on for the best links of the week and the haiku:
This Week’s Links:
Today’s Econ Haiku:
A holiday gift
Real job growth is picking up
There’s much to pick up