The Federal Financial Forum

From: RegBlog | Penn Program on Regulation

Marika Mikuriya

Consumer demand for quick credit has fueled the growth of a payday loan industry that, according to the Consumer Financial Protection Bureau (CFPB), imposes significant costs on those borrowers least likely to be able to afford them. The CFPB is concerned
that these small, short-term, high-interest loans – which the borrower is expected to repay with his or her next paycheck – are forcing individuals into spiraling cycles of debt. This March, after months of debate, the Bureau released an outline of a proposed payday loan rule designed to protect borrowers from debt traps while preserving access to quick credit.

From: NewsMax Finance

By Dan Weil

If you thought the Dodd-Frank financial reform act of 2010 eradicated the dangers to our financial system, think again, says former Federal Reserve Chairman Paul Volcker.

“Even as the United States continues its long climb back from the financial crisis, it is all too clear that the federal  financial regulatory structure is simply inadequate to head off future crises,” he writes in an article for The Washington Post.

“The structure that failed us in anticipating and responding to the emergency is largely still in place.”

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From: BuzzFeed

The country’s largest bank had almost $25 billion in revenues and almost $500 million in legal expenses in the first quarter. The bank’s chief financial officer said it hoped to resolve the Justice Department’s investigation into its foreign exchange trading practices “in the coming weeks.”

Matthew Zeitlin

JPMorgan Chase, the country’s biggest bank by assets and the first major bank to report its earnings for the first quarter, slightly beat out analysts’ expectations, but was still dragged down by high pretax legal expenses of $687 million.

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Editor’s Note: Cross-posted from Regulatory Cybersecurity.

From: insideARM.com

Patrick Lunsford

A lawsuit filed late last month by the Consumer Financial Protection Bureau (CFPB) accuses a network of companies of engaging in sham collection operations targeting “phantom” debts. But the action also names a number of legitimate payment processors and a voice broadcasting service as defendants for “enabling” the debt collectors in their scheme.