Saturday, March 27, 2010
Remember when English was easy to understand
Bob Herbert looks at the plight of the CFPA in the Senate financial reform bill and finds an interesting change in the accepted definition of several words.
An interesting concept at work here is the notion that consumer protections that work too well would end up hurting the “safety and soundness” of the nation’s financial sector. (That’s the reason the Senate bill provides for bank regulators to have a veto over the proposed agency’s rules under some limited circumstances.)“Safety and soundness” once upon a time meant that the bank would be there when you needed your money. Now the meaning is that you will be there when the bank needs to make more money.
“Safety and soundness” is a euphemism for profitability. What’s really being said is that when the profitability of the big banks and other financial agencies and institutions are in conflict with the fair treatment of consumers, it’s the fair treatment of consumers that has to give way.
Now would be a good time to start putting that notion to rest.
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