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.

 

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.