Safety and Soundness

Safety and Soundness

• Safety and Soundness v. Consumer Protection
• Twin Peaks

• (p3) – Barney Frank (D-MA) –  I was told by one of the regulators, well, we can do regulation of consumer protections under our power to enforce safety and soundness on the banks, the argument being that a bank that does not treat consumers well can be called to account because it is jeopardizing its safety and soundness.
  • I wish.
• In fact, done cleverly enough, being unfair to consumers can contribute to the safety and soundness of a bank.

2007 0613 – GOV (House) – Improving Federal Consumer Protection in Financial Services. (CSPAN) Financial Services Consumer Protection, Barney Frank (D-MA) – [PDF- 257p, VIDEO-CSPAN]

• (p23) – Doug BARNARD, Jr (GA) – Mr. Greenspan and Mr. Clarke, too, do you interpret that the sale of insurance is a risky business, where it would bring down the safety and soundness of an institution?
• Alan GREENSPAN. I do not, Mr. Barnard.
• Mr. BARNARD. Mr. Clarke.
• Mr. CLARKE. We do not believe that to be the case either.

1991 0430 and 0502 – GOV (House) – Restructuring of the Banking Industry, Part 2, Frank Annunzio (D-IL)