CFPB wants repeat offender banks stripped of licenses

[pizzadude]

Rohit Chopra, the director of the Consumer Financial Protection Bureau, says regulators should go much farther: He wants banks and other big financial firms that break the same law multiple times to face harsh penalties — which could effectively force some of them to break up for failing to stay on the right side of the rules:

https://cbnc.com/consumer-watchdog-wants-repeat-offender-banks-stripped-of-licenses/

[gdale6]

Couldnt get that link to load, here is another tag to it:

https://pressnewsagency.org/consumer-watchdog-wants-repeat-offender-banks-stripped-of-licenses/

I dont see this happening but it really should have been implemented decades ago with all the malfeasance banks have been caught doing.

[pizzadude]

Thanks @gdale6 !

I agree odds are low that something this drastic would happen but i think it's a step in the right direction that it's even being discussed.  

[coldfusion]

Having a few CEOs held personally liable with felony convictions for violating federal laws along with a couple of FDIC charter revocations should send an appropriate and pointed message. 

[Anonymous]

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@coldfusion wrote:

Having a few CEOs held personally liable with felony convictions for violating federal laws along with a couple of FDIC charter revocations should send an appropriate and pointed message. 

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Agree!

Great thread and only wish there was more bite in the enforcement side of government.

[Andypanda]

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@coldfusion wrote:

Having a few CEOs held personally liable with felony convictions for violating federal laws along with a couple of FDIC charter revocations should send an appropriate and pointed message. 

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I think all corporations should be treated Similarly, not just financial institutions.

[NRB525]

This is a ridiculous proposal. The CFPB may be inundated with complaints, but that is not the same thing as saying the offerings of these banks are fundamentally criminal. In many of the cases, it's a gray area because the rules / laws cannot anticipate all the potential ways a financial product may be offered. 

Specific instances of violation, such as red lining for mortgages, do need to be pursued for penalties and specific regulation clarification enacted. Oh look, that's what happened. 

The financial products are complex, the financial institutions have thousands of people across the country in separate offices, the vast majority trying to do good work, and tens of millions of consumers use products from these institutions. Shutting down an entity has far more extensive collateral damage than this executive realizes. So nothing like this will be implemented. The reason we have lobbyists is to enable corporations to weigh in with their perspective on uninformed proposals such as this, because that perspective is a necessary part of free speech and effective government.