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Meltdown - The Financial Crisis, Consumer Protection, and the Road Forward (Hardcover)
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Meltdown - The Financial Crisis, Consumer Protection, and the Road Forward (Hardcover)
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Meltdown reveals how the Consumer Financial Protection Bureau was
able to curb important unsafe and unfair practices that led to the
recent financial crisis. In interviews with key government,
industry, and advocacy groups along with deep archival research,
Kirsch and Squires show where the CFPB was able to overcome many
abusive practices, where it was less able to do so, and why. Open
for business in 2011, the CFPB was Congress's response to the
financial catastrophe that shattered millions of middle-class and
lower-income households and threatened the stability of the global
economy. But only a few years later, with U.S. economic conditions
on a path to recovery, there are already disturbing signs of the
(re)emergence of the high-risk, high-reward credit practices that
the CFPB was designed to curb. This book profiles how the Bureau
has attempted to stop abusive and discriminatory lending practices
in the mortgage and automobile lending sectors and documents the
multilayered challenges faced by an untested new regulatory agency
in its efforts to transform the broken—but lucrative—business
practices of the financial services industry. Authors Kirsch and
Squires raise the question of whether the consumer protection
approach to financial services reform will succeed over the long
term in light of political and business efforts to scuttle it. Case
studies of mortgage and automobile lending reforms highlight the
key contextual and structural conditions that explain the CFPB's
ability to transform financial service industry business models and
practices. Meltdown: The Financial Crisis, Consumer Protection, and
the Road Forward is essential reading for a wide audience,
including anyone involved in the provision of financial services,
staff of financial services and consumer protection regulatory
agencies, and fair lending and consumer protection advocates. Its
accessible presentation of financial information will also serve
students and general readers.
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