Turning lemons into lemonade: that could aptly characterize
the strategy of the banking lobby as the Consumer Financial Protection Bureau (CFPB)
was promulgating a broad set of mortgage rules that were announced in January
2013. Rather than merely seeking to minimize more onerous standards, the
industry sought to insulate itself as much as possible from getting sued by
borrowers. Ignoring the rather obvious self-interest of the banks, the new
regulators accepted the bankers’ claim that the legal protection was necessary
for the banks to be willing to produce mortgages.
The full essay is at "Banking Lobby."
