Interesting article... Thoughts?
Banks on a Crime Spree?
First, I found it interesting they attached Romney by saying he would make everyone else look like deciples of Elliot Ness. It's not like Obama did much better with bank oversight.
Second, and much more of a broad based opinion. I am in the private wealth management industry and everything that does with it from investments, audits, banking regulation, government regulation, SEC regulations, SSAE 16 compliance audits and a host of other areas.
The biggest one I have been looking at is the CFPB (Consumer Financial Protection Bureau), it was referenced in the article. The CFPB was created by Dodd-Frank or as a result of it. It really hasn't started taking affect in the industry. Banks, investment companies and debt collectors are still trying to figure out what approach the CFPB is going to take when it audits these companies. My company falls into the scope of audit for them. The estimated cost for us is $68,000 every other year. That cost is further supported by other public companies in my industry.
While I don't think another layer of buerocratic BS is what is needed its to early for me to determine if they will have any affect on companies. Dodd-Frank seems to have had little effect on how companies operate.
Final thought, banking is a complex industry if you look at every function they engage in. There is little one could do in looking at a quarterly or annual report and being able to decipher some of that is above the average individuals ability. Sure, banks are going to charge fees, they are going to try to make money. They are public companies even though they are regulated by the government. That is the general problem. They are beholden to the shareholder. If they can't generate earnings they are a worthless company. Sure, what they have done is discpicable. In many cases illegal. But, I think the government also recognized the instability that would be created if they were to shut down, remove the CEO or over regulate the banks. It's a great campaign platform but very difficult to enact.
Yeah, I don't see either either side of the political aisle as being angelic in these matters at all. Thanks for your insight, Bostonman.
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