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Banking Law

Credit to Cronies: Government’s Heavy—IF Hidden—Hand - Event Video

2014 National Lawyers Convention
Edward J. DeMarco, Bert Ely, Paul H. Kupiec, Paul S. Atkins, Wayne A. Abernathy November 17, 2014

Key to a vibrant and increasingly productive economy is an efficient credit allocation process -- the mechanism by which all forms of credit, and not just bank loans, flow to those who can make the best use of that credit.  Do  government regulations influence and therefore distort – intentionally or not – the allocation of credit within the U.S. economy?

Bank capital and liquidity standards, consumer lending requirements, lending rules enforced by the Consumer Bureau, the Community Reinvestment Act, and government-sponsored enterprises (notably Fannie Mae, Freddie Mac, and the Farm Credit System) among other federal programs steer credit to favorites based on government priorities.  Designating large financial firms as “systemically important financial institutions” might diminish their role as independent credit providers and subject them to further government direction.   Some argue that Federal Reserve monetary policy, which greatly influences all interest rates, has consequent credit-allocation effects.  Where did this all come from, where is it going, and what it means for the future of the economy will be questions for the panel.

The Federalist Society's Corporations, Securities & Financial Services & E-Commerce Practice Group presented this panel on "Credit to Cronies: Government’s Heavy—IF Hidden—Hand" on Friday, November 14, during the 2014 National Lawyers Convention.

Featuring:

  • Mr. Edward J. DeMarco, Senior Fellow-in-Residence, Milken Institute
  • Mr. Bert Ely, Principal, Ely & Company, Inc.
  • Dr. Paul H. Kupiec, Resident Scholar, American Enterprise Institute
  • Moderator: Hon. Paul S. Atkins, Patomak Global Partners LLC; former Commissioner, U.S Securities & Exchange
  • Introduction: Hon. Wayne A. Abernathy, Executive VP for Financial Institutions Policy and Regulatory Affairs, American Bankers Association; and Chairman, Financial Services & E-Commerce Practice Group

Mayflower Hotel
Washington, DC

Consumer Financial Protection Bureau Update - October 2014 - Podcast

Financial Services & E-Commerce Practice Group Podcast
Julius L. Loeser, Todd J. Zywicki October 23, 2014

Members of the Federalist Society’s Financial Services & E-Commerce Practice Group Executive Committee will provide an update on recent important activity at the Consumer Financial Protection Bureau (CFPB) on this Teleforum conference call. Recent developments include the CFPB Student Loan Ombudsman’s comments at a meeting of the American Bar Association Business Law Section, the CFPB’s lawsuit against Corinthian Colleges, Inc., a recent CFPB report on fair lending in the indirect auto loan market, a report from the Government Accountability Office on the CFPB’s data collection practices, Director Richard Cordray’s remarks on public service and student debt, and a Washington Post article on whether Wal-Mart and Apple’s provision of some financial services may subject them to oversight by the CFPB.

  • Julius L. Loeser, Of Counsel, Winston & Strawn LLP
  • Prof. Todd J. Zywicki, Foundation Professor of Law, George Mason University School of Law

Consumer Financial Protection Bureau Update - September 2014 - Podcast

Financial Services & E-Commerce Practice Group Podcast
Julius L. Loeser, Todd J. Zywicki September 29, 2014

Members of the Federalist Society’s Financial Services & E-Commerce Practice Group Executive Committee provided an update on recent important activity at the Consumer Financial Protection Bureau (CFPB) on this Teleforum conference call. Recent developments included a Washington Examiner article titled “Revolving Door at Regulator CFPB Enables Former Bureaucrats to Cash In at Taxpayers’ Expense”, the repeal of the bank regulators credit practices rules and the simultaneous warning that agencies will still enforce them, the CFPB’s barring the sale of student loans by Corinthian Colleges Inc., a CFPB report promoting “financial wellness” in the workplace, the CFPB's announcement that it will hold a field hearing on auto finance on September 18 in Indianapolis, and the introduction of bipartisan legislation that would invalidate the CFPB’s March, 2013 auto finance guidance and require the CFPB to proceed, if it chooses to do so, by rulemaking.

  • Julius L. Loeser, Of Counsel, Winston & Strawn LLP
  • Prof. Todd J. Zywicki, Foundation Professor of Law, George Mason University School of Law

Consumer Financial Protection Bureau Update - August 2014 - Podcast

Financial Services & E-Commerce Practice Group Podcast
Wayne A. Abernathy, Julius L. Loeser August 15, 2014

Members of the Federalist Society’s Financial Services & E-Commerce Practice Group Executive Committee provided an update on recent important activity at the Consumer Financial Protection Bureau (CFPB) on this Teleforum conference call. Recent developments included the CFPB’s proposal to make public the details of anonymous consumer complaints, the CFPB’s 573-page proposal to require residential mortgage lenders to report publicly 37 new details on each home mortgage application that they receive, a bill that was introduced in the U.S. Senate to increase the threshold size of banks subject to CFPB examination from $10 billion to $50 billion, an enforcement action that the CFPB commenced against a law firm for its debt collection practices, and a warning that the CFPB issued to consumers about virtual currencies like Bitcoin.

  • Hon. Wayne A. Abernathy, Executive VP for Financial Institutions Policy and Regulatory Affairs, American Bankers Association
  • Julius L. Loeser, Of Counsel, Winston & Strawn LLP

Consumer Financial Protection Bureau Update - July 2014 - Podcast

Financial Services & E-Commerce Practice Group Podcast
Wayne A. Abernathy, Todd J. Zywicki July 21, 2014

Members of the Federalist Society’s Financial Services & E-Commerce Practice Group Executive Committee provided an update on recent important activity at the Consumer Financial Protection Bureau on this Teleforum conference call. Recent developments included CFPB Director Richard Cordray’s congressional testimony on auto lending discrimination, as well as the congressional testimony of CFPB whistleblower Ali Naraghi on alleged “results-oriented” examinations of regulated entities, bureaucratic inefficiency, and workplace discrimination at the CFPB, and Operation Chokepoint.

  • Hon. Wayne A. Abernathy, Executive VP for Financial Institutions Policy and Regulatory Affairs, American Bankers Association
  • Prof. Todd J. Zywicki, Foundation Professor of Law, George Mason University School of Law