CBA President Comments on President Obama’s Plan for Financial Regulatory Reform

ARLINGTON, Va. – Today Richard Hunt, president of the Consumer Bankers Association, provided the following statement on President Obama’s plan to restructure the financial services regulatory system.

“We concur. The American financial regulatory system needs swift reform to bolster consumer confidence and help prevent future economic crises.

“Retail banks are the heart of the American economy. They offer valuable products that allow consumers to function in the economy, and we are in favor of consumers understanding how to use these products appropriately. We are concerned the Obama proposal will be overly burdensome, stifle innovation and limit access credit—just as the economy is struggling to recover.

“We are concerned that creating a new entity— a Consumer Financial Protection Agency— would create a maze of regulations suppressing creativity and product innovation. Developing innovative products is imperative to our nation competing in the global marketplace. Putting a gatekeeper in place to review and approve products interferes with the relationships bank have with customers— especially customers with good credit who qualify for loans for a home, an education, or who simply wish to participate in our modern economy.

“CBA will be discussing these issues with our members as we share their concerns with Congress and the Administration as we all work together to find appropriate solutions to strengthening our regulatory system to benefit consumers and the economy.”

For ninety years the Consumer Bankers Association has been the recognized voice on retail banking issues in the nation’s capital.  Member institutions are the leaders in consumer financial services, including auto finance, home equity lending, card products, education loans, small business services, community development, investments, deposits and delivery.

CBA was founded in 1919 and provides leadership, education, research and federal representation on retail banking issues such as privacy, fair lending, and consumer protection legislation/regulation.  CBA members include most of the nation’s largest bank holding companies as well as regional and super community banks that collectively hold two-thirds of the industry’s total assets.