Tuesday, March 30, 2010
It is a good thing that Banks have no principles
They might then be in some trouble if they had to explain their awesome flip flops on positions within peoples memories. When one of those people is Elizabeth Warren, you know they have some explaining to do.
"ABA lobbyists now aggressively insist that separating consumer protection and safety and soundness functions would unravel bank stability," Warren writes. "Yet just a few years ago, they heatedly argued the opposite--that the functions should be distinct.As Ms. Warren goes on to say, the only constant principle the ABA adheres to is opposition to any meaningful reform that would cut into their masters profits.
"In 2006, the ABA claimed to act on principle as it railed against...[a]proposal for 'combin[ing] safety and soundness guidance with consumer protection guidance, creating confusion that is best addressed by separating them...[The] ABA recommends that the safety and soundness provisions relating to underwriting and portfolio management be separated from the consumer protection provisions.'
"Read that again: the ABA in 2006 said that policymakers should separate safety-and-soundness and consumer protection--exactly the opposite of its position today," Warren notes.
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