The best argument for regulating the hell out of the financial industry

In huge change, Obama’d strip Fed of credit card oversight | McClatchy

American Financial Services Association officials said they didn’t believe that the proposed new agency was a reflection of past regulatory failures.

“We honestly believe that the regulatory bodies in place now have adequately addressed the situation,” said Chris Stinebert, the association’s president and chief executive. “The regulatory structure as it exists now between the federal (government) and the state(s) is working.”

C’mon, you guys just helped CRATER THE ENTIRE WORLD ECONOMY by pushing credit on people who couldn’t afford it and pulling midstream bait-and-switch scams on those who could, and you think the current regulatory morass is fine? Oh, right. You bought legislation that makes it easier to fly a camel through the eye of a needle than to get out of your credit-card debt, and pain at the top of the financial industry is still not being able to afford the second vacation home. I guess you would think that the current setup is working just fine.

Even more chilling is another guy working for the same organization:

However, the commission could end up limiting consumer credit options and innovation just as the economy is beginning to rebound, said Bill Himpler, the executive vice president for government affairs of the American Financial Services Association, the trade association for the consumer credit industry.

When you remember what “innovation” and “consumer credit options” (yep, always the option to pay more) have meant during the runup to this recession, that translates something like, “We’re not lending a lot of money right now because everyone is cutting back and we’re not sure people can pay any more, but as soon as people start having money in their pockets again we’ll have new ways to siphon it back out. And we don’t want anyone interfering with that.”

These folks might be so transparently out of touch with reality because they’ve swallowed their own hype. Or they’ve simply bought enough legislators that they can say stuff like this knowing that no one can touch them.

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One Response to “The best argument for regulating the hell out of the financial industry”

  1. euandus Says:

    Remember it is a strategic competitive advantage to the stronger banks that the weaker ones have their exec comp limited… I don’t think Barak Obama will stand up to the execs at the stronger banks. I’ve just posted on this, in case you are interested.

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