As the sheep protect the wolves in the form of consumer funded bailouts, (to the tune of $1.1 Trillion), the wolves vow to slaughter the sheep & the proposed agency that would protect them
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Wolves Gone Wild:
Why would the banking industry so vehemently object to the Obama administration's newly proposed Consumer Financial Protection Agency, an agency tasked with only one mission... to protect consumers, & let's be honest, to protect the banking industry from itself.
The proposed agency, made necessary by the actions or inactions within the banking industry itself is proof positive that just such an agency is not only warranted but desperately needed. In fact, it is the banking industry that not only set the stage for such an agency but undoubtedly served as the, "what not to do" model under which the new standards were created, thus ensuring safety, soundness & transparency, by setting new standards for ordinary mortgages, restricting & prohibiting risky loans & preventing deceptive financial practices... including, industry favorites like hidden fees & pre-payment penalties, & ironically, despite the banking industries vow to kill the proposal, the agency itself would protect both consumers & banks alike.
Contrast Obama's proposed agency to that of existing "watch dog" agencies, which leave a hole the size of Texas of unregulated financial institutions & questionable practices
Wolves in Sheep's Clothing:
What would motivate such an action on the part of banks? Consider these industry statements & the intense lobbying battle already underway.
Leader of the Pack:
Edward L. Yingling, president of the American Bankers Associaton:
"It's going to be a huge fight",
"This agency would have broad powers that go beyond every consumer law that has ever been enacted"
(Eddie, Eddie, Eddie... Big Brother scare tactics? FYI, Big Brother is now a reality... show & guess what, not so scary!)
The Pack:
Banking Industry Executives:
"Vow to fight Mr. Obama's plan with everything we have"
A Herd of Questions:
What do these actions say about an industry that would take such an unequivocal stance, an industry prepared to spend millions, billions of dollars (undoubtedly taxpayer dollars) to ensure that transparency & fairness never see the light of day? Why is the banking industry willing to protect a system that adversely affects its own customers? What or who is the banking industry really concerned about?
Let's be clear, to object & vow to fight with everything you have, a proposal that would protect not only your interests, but the interests of your own customers leaves no room for doubt as to intent or motive... & this despite the $1.1 Trillion Dollar Customer/Consumer-Funded Bailout for the likes of such banking industry giants as:
Bank of America: $52.5 Billion, Bank of America Mortgage: $804.4 Million
(By the way, this year, B of A raised the maximum number of times customers can get hit with overdraft fees from 5 a day to 10 & began charging a one-time overdraft fee of $35 if the account remains in the negative for more than 5 days. BofA also raised the monthly fee on "My Access" checking accounts from $5.95 to $8.95. (Bank of Opportunism)
Citi Group Bank: $50 Billion, Citi Group Mortgage: $1.1 Billion
Wells Fargo: $25 Billion
Suntrust: $4.9 Billion
PNC: $7.6 Billion
Chase Home Finance: $3.6 Billion
Wolf Den:
Of the soaring number of homeowners facing foreclosure, a recent survey of the largest mortgage companies participating in the administrations foreclosure prevention program shows that most have focused their efforts on the most delinquent borrowers first, which explains why troubled borrowers, not yet in default but eligible for the program say they've found it hard to get their mortgage providers to modify their loans.
Cry Wolf, Cry:
Scott Talbott, Senior VP for government affairs at the Financial Services Roundtable, an industry lobbying group wined... "If you are against a consumer regulatory agency, then everybody will say you're against consumer regulation"
Hey Scotty, keep crying... the sheep out number the wolves!
