Todd Zywicki on the proposed Consumer Financial Protection Agency
Complex Loans Didn't Cause the Crisis
Regulatory reform that can improve competition and consumer choice in financial services is long overdue. But no new federal bureaucracy such as the Obama administration's proposed Consumer Financial Protection Agency (CFPA) is needed to bring that about.
More importantly, the administration is incorrect in claiming that such an agency would have prevented the present financial crisis and is necessary to prevent the next crisis. On the contrary, such an agency might be the first step toward more problems.
During the housing boom bankers made a raft of extraordinarily foolish loans. Some were the result of lenders defrauding borrowers; probably at ... Read More
Will Congress Take Another Swipe at Credit Cards?
Todd Zywicki's op-ed about how imposing a national usury ceiling on credit card interest rates and limits on interchange fees will hurt consumers is published in The Wall Street Journal.
The Debt Crusader
NewsWeek's Daniel McGinn cites Todd Zywicki in this profile of Elizabeth Warren.
Journal Articles
Financial Services and E-Commerce
This article by Todd Zywicki examines the call for regulatory changes on credit cards.
Mercatus On Policy
 |
Loans are not Toasters: The Problems with a Consumer Financial Protection AgencyPolicy makers continue to propose policies and regulations intended to prevent another financial crisis of the magnitude recently experienced. One major proposal is to establish another federal agency: The Consumer Financial Protection Agency to protect consumers from "bad" loan and credit products, just as the Consumer Products Safety Commission protects… |
Congressional Testimony
Testimony on the Consumer Financial Protection Agency
Todd Zywicki's remarks before the House Financial Services Committee primarily address the Obama Administration's proposal to create a new Consumer Financial Protection Agency (CFPA), which would have the authority to issue and enforce new regulations related to consumer lending products.
Working Papers
The Housing Market Crash
Widespread foreclosures and the collapse in home prices in many areas of the United States that began in 2007 and continued through 2008 and 2009, spawned an ongoing global financial crisis. As a result, the United States has engineered a series of unprecedented market interventions designed to stabilize the housing market and the financial markets dependent on mortgage-backed securities. However, standard economics provides a compelling explanation for much of the increase in household mortgage obligations. This working paper focuses on underlying questions related to consumer behavior and looks at the impact of these developments in the housing market on household financial condition.
Working Papers
The Law and Economics of Subprime Lending
This working paper by Senior Scholar Todd Zywicki explores the most benefitial regulatory responses to the subprime lending crisis.