Principles to Guide Re-Regulation
This post originally appeared on Caveat Emptor.
It is 2009 and the economy has tanked. Subprime mortgage lending was the domino that started the whole mess a-falling. Worst of all, there is no end in sight to the recession we’ve slid into.
The good news is that, in the midst of the mess, there is a rare opportunity to take a look at the whole system of financial regulation (or lack thereof). There is some actual political interest in reversing the deregulatory trend that led to the greatest economic meltdown since the Great Depression.
To help inform this ongoing debate, AFFIL offers Ten Principles that should guide financial regulation for consumer protection. Click here to read them in full.
The key is that lawmakers and regulators actually keep consumer issues front and center throughout the debate, rather than burying these concerns as lesser priorities. This is both to protect consumers—many of whom were being thoroughly ripped off even while the economy was flush—and to protect the economy as a whole, which simply cannot remain healthy for the long term in the absence of consumer protection.