Financial Services: US recognise impact of “Complexity Machine”…
Thursday, 18 March, 2010 Leave a comment
…when will UK Financial Services read the signs and ACT, as opposed to merely “talking the talk” and spending on marketing noise that does nothing to rebuild consumer trust or repair reputational damage?
Elizabeth Warren, Chair of the TARP Congressional Oversight Panel and Harvard Law Professor, was the featured speaker at this event. Professor Warren outlined what she sees as the necessary components of an effective consumer financial protection regulation reform.
Professor Warren discussed the need for substantive reform in regards to consumer financial regulation and called for the establishment of a consumer financial protection agency with the ability to enforce strict regulatory policies regarding the services banks and other consumer credit institutions can and cannot offer to consumers. She stood firm in her convictions regarding the creation of an agency with actual authority to enforce regulatory reform – responding to a question from the audience she commented that “a watchdog without teeth is not effective.”
Professor Warren also advocated against what she calls the “complexity machine”, the obscuring and intentional complication of consumer financial products to the point that Americans are no longer able to discern their best options and the smokescreen of complexity surrounding financial reform on the Hill. She promoted a move towards transparency in the consumer financial sector that would allow consumers to once again establish a relationship of trust with their banking institutions—bolstered by the firm oversight of a regulatory agency.