Filippo Cardone Home - About Filippo Cardone We propose that federally chartered institutions be subject to nondiscriminatory state consumer protection and civil rights laws to the same extent as othe

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) March 5, 2010 -- Filippo Cardone Home - About Filippo Cardone
We propose that federally chartered institutions be subject to nondiscriminatory state consumer protection and civil rights laws to the same.

Filippo Cardone Home - About Filippo Cardone

We propose that federally chartered institutions be subject to nondiscriminatory state consumer protection and civil rights laws to the same extent as other financial institutions. This would restore a fairer and more measured approach to the roles of the states with respect to federally chartered institutions. We also propose that states should be able to enforce these laws, as well as regulations of the CFPA, with respect to federally chartered institutions, subject to appropriate arrangements with prudential supervisors. With respect to state banks supervised by a federal prudential regulator, the CFPA will be the primary consumer compliance supervisor at the federal level. Maintaining consistency among fifty states’ supervisory and enforcement efforts will always remain a significant challenge, but the CFPA’s concurrent supervisory and enforcement powers should place it in a position to help. The CFPA should assume responsibility for federal efforts to help the states unify and strengthen standards for registering and improving the quality of providers and intermediaries.

Filippo Cardone Bio The nation’s largest financial firms,already highly leveraged, became increasingly dependent on unstable sources of shortterm funding. In many cases, weaknesses in firms’ risk-management systems left them

unaware of the aggregate risk exposures on and off their balance sheets. A credit boom accompanied a housing bubble. Taking access to short-term credit for granted, firms did not plan for the potential demands on their liquidity during a crisis. When asset prices started to fall and market liquidity froze, firms were forced to pull back from lending,limiting credit for households and businesses.Our supervisory framework was not equipped to handle a crisis of this magnitude.

In particular, the growth of derivatives markets and the introduction of new derivative instruments have highlighted the need for addressing gaps and inconsistencies in the regulation of these products by the CFTC and SEC.Prior to the current financial crisis, a number of federal and state regulations were in place to protect consumers against fraud and to promote understanding of financial products like credit cards and mortgages. But as abusive practices spread, particularly in the market for subprime and nontraditional mortgages, our regulatory framework proved inadequate in important ways. Multiple agencies have authority over consumer protection in financial products, but for historical reasons, the supervisory framework for enforcing those regulations had significant gaps and weaknesses.

Filippo Cardone     Filippo Cardone Bio     Filippo Cardone Info     Filippo Cardone Offerts