I am troubled by the recent comment from JPMorgan Chase CEO Jamie Dimon that creation of the proposed Consumer Financial Protection Agency would “hurt short-term profits,” but I am not surprised. It is likely that the loss of short-term profits that Mr. Dimon projects are due to changes required by recent credit card reforms, which were signed into law with bipartisan support in May 2009.
From the President: Put long-term financial security over short-term profits
Credit card lenders like Chase, as well as other financial services providers, strongly oppose the establishment of a consumer financial watchdog because it could expand the same type of consumer protections for other products they market, such as overdraft loans, tax refund anticipation loans, and other high-cost products with hidden fees.
It’s time to prioritize consumers’ long-term financial security over financial institutions’ short-term profits. Unless meaningful consumer protections are established, such as the Consumer Financial Protection Agency currently being debated in Congress, record-high levels of non-productive debt will continue to drive consumer bankruptcies.