Bove: CFPB Will Send Consumers to the Mafia
By David Benoit and Alan Zibel
June 11, 2013
Wall Street Journal
Is Richard Cordray, the head of the Consumer Financial Protection Bureau, pushing consumers into the hands of folks like Don Corleone?
That’s the view of bank analyst Dick Bove.
Bove, the often-unique analyst, argues in a new research note that the CFPB’s examination of overdraft fees published Tuesday, coupled with its pressure on payday lenders will force low-income Americans into an even seedier version of “shadow banking system”: the Mafia.
And he should know, he says, because his own family once turned to the Mafia in time of financial need.
“This is not theory,” Bove writes, “when I was a child my father was ill due to a botched operation on his gall bladder. He was in the hospital for over one year. The only source of funding for my family at the time was the Mafia.”
CFPB officials say they are not out to ban the product entirely.
“I think it is important to note that nothing in this report implies that banks and credit unions should be precluded from offering overdraft coverage,” Cordray told reporters on Monday “Moreover, our study shows progress in some areas in recent years in protecting consumers from harm.”
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