PayThink

A response to John Bowman.

To set monetary policy and function as a lender of last resort, the Board of Governors must have the expertise to understand the operations and condition of financial institutions.

People without an extensive derivatives background can learn about the nuances of these financial contracts. Massad's law degree, stint as Tarp adviser and global professional experience will help him achieve the CFTC's mission of derivatives reform.

To avoid incurring a customer's wrath or a lawsuit, banks should make sure new fees carry a clear value exchange, offer something new (ahem, mobile) and are easily avoided. Resist any temptation to set fee traps.

The Consumer Financial Protection Bureau plans to hold a field hearing Thursday on the concerns about how the agency is regulating indirect auto lenders.

In its next round of stress tests, the Federal Reserve revisits conditions similar to those of the Great Recession. But booms are far more dangerous for bank stability than recessions, since the seeds of failure are invariably sown during them.

Sen. Elizabeth Warren garnered support on Tuesday at a Wall Street reform event in Washington D.C. to help end "too big to fail."

Americans for Financial Reform and the Roosevelt Institute have plans to release a joint paper Tuesday assessing policymakers' progress in implementing the Dodd-Frank Act.

Industry-accepted standards would reduce friction and costs in satisfying compliance requirements during a time of heightened scrutiny for banks and their vendors.

At some point, the CFPB may start asking if issuers' credit scoring models negatively affect minority credit card applicants more than white applicants.