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In Cost/Benefit Chief Cass Sunstein’s recent White House Blog Post, Making Regulation Smarter to Save Lives and Money, Sunstein talks about streamlining regulations as highlighted in the President’s recent Executive Order. What the President and Mr. Sunstein should be talking about is a fast and smart regulatory review process.

Several members of the PIRG-backed Americans for Financial Reform are among the witnesses at a field hearing on prepaid cards that the Consumer FInancial Protection Bureau holds at noon today in Durham, NC. While reloadable prepaid cards are growing fast as an option for convenience, for the unbanked and for distribution of government and student benefits, so-called general purpose reloadable prepaid cards sold under a variety of brands have fewer consumer protections than credit cards (gold standard), debit cards (fewer protections), and payroll, government benefit and gift cards (some protections).The CFPB will announce a advance notice of proposed rulemaking to improve the situation.

It's called force-placed insurance for a reason. Your mortgage lender buys it for you and you are forced to pay for it, even if it isn't the best deal for you. When lenders purchase a product to "benefit" consumers, they often have numerous incentives to make the more expensive, not less-expensive, choice due to what's called reverse competition. That's a bad deal for you and a bad deal for the economy, but a good deal for the kind of sordid crony capitalism that relies on kickbacks, not better products. Fortunately, the New York Department of Financial Services (both banking and insurance) and the CFPB are both taking a deep dive into the forced-place-insurance mess.

The silver lining in the JP Morgan Chase gambling (they call it "hedging") losses now predicted to reach $3-5 billion, not just $2 billion, is that Congress has slowed misguided efforts to slow or repeal important reforms to derivatives trading. Also, you can "like" or comment on my recent debate position  over at US News and World Report urging the Federal Reserve to use this latest big bank mess to implement a strong Volcker rule against risky bank betting with other people's money.

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