Comments of the Week: Feb. 4 - 8
February 8, 2013 10:58 AM
On the Consumer Financial Protection Bureau
"The CFPB is a frontal assault on constitutional government and free enterprise."Related Article: Who Should Run the CFPB if Cordray Leaves? (Image: Thinkstock)
On who should run the CFPB if Richard Cordray has to step down:
"My novel idea would be the selection of a community banker. The novelty would be that common sense could actually emanate out of a Washington bureaucracy."Related Article: Who Should Run the CFPB if Cordray Leaves? (Image: Bloomberg News)
On whether Richard Cordray should remain as CFPB director:
"Cordray's even-handed performance justifies automatic confirmation … [the] CFPB is currently one of the few effective agencies in government, mainly because of its independence from those it regulates and the compromised Congress."Related Article: How Elizabeth Warren Can Save the CFPB (Image: Thinkstock)
On the assertion that Elizabeth Warren can save the CFPB:
"Saying Elizabeth Warren can save the CFPB is like saying smoking can save a crack addict."Related Article: How Elizabeth Warren Can Save the CFPB (Image: Bloomberg News)
On whether certain depositors of failed banks should be 'bailed in':
"Reduce the moral hazard (FDIC protection - taxpayer protection) and you would have reduced the cost of the banking crisis. It's always easier to play with (ahem - risk) other people's money."Related Article: Which Depositors Should Suffer Losses When a Bank Fails? (Image: Thinkstock)
On the Federal Reserve's Jeff Lacker opposing future bailouts:
"Lacker understands the bailout impulse of his colleagues: now the issue is how to stop them!"Related Article: Fed's Lacker: How to Stop Bailouts for Good (Image: Bloomberg News)
On Lacker saying government support is not the answer to financial problems:
"This stated while the Fed continues to print money at the rate of $85 billion a month with no end in sight."Related Article: Fed's Lacker: How to Stop Bailouts for Good (Image: Thinkstock)
On whether the FSOC should be completely separated from the Treasury:
"By having the Treasury Secretary as permanent chairman, the FSOC will forever be a political tool of whichever administration is in power. A body made up of regulatory agencies should be apolitical."Related Article: Will FSOC Be a Priority for Treasury Pick Jack Lew? (Image: Bloomberg News)
On RBS' recent Libor settlement:
"Fascinating how efficient U.S. authorities appear to be in pursuing legal actions against Barclays, UBS and RBS, yet so much less efficient with any of the U.S.-headquartered banks that have also had their Libor records subpoenaed, including JPM Chase, Citigroup and B of A."Related Article: RBS to Pay $790 Million to Settle Libor Probe: Report (Image: Thinkstock)
On Federal Reserve Gov. Elizabeth Duke pushing community banks to lend:
"The risk of assessment of penalties for non-compliance at the community banks [is] more likely to be against the individual loan officers and directors … unlike the megabanks where the only penalties are against the shareholders."Related Article: Fed's Duke Pushes Community Bankers on Lending Practices (Image: Bloomberg News)
On Federal Reserve Gov. Elizabeth Duke pushing community banks to lend:
"Community banks … are carrying an inordinate amount of the cost to comply … Dodd- Frank has spanked the wrong baby."Related Article: Fed's Duke Pushes Community Bankers on Lending Practices (Image: Thinkstock)
On credit, capacity and collateral, or the three 'Cs' of underwriting:
"What we are missing is the 4th 'C', common sense, which doesn't seem to exist anymore."Related Article: Regulators Choke Off Good Loans in Zeal to Prevent Bad Ones (Image: Thinkstock)
