Financial reform is at a critical juncture in Washington. The House has already passed a bill to create a strong and independent Consumer Financial Protection Agency (CFPA) to put consumers’ interests over those of Wall Street and crack down on the risky lending that spurred the financial crisis. However, Senate Banking Committee Chairman Chris Dodd (D-CT) continues to compromise the agency’s independence in the interest of bipartisan support.

While Woodstock Institute is deeply engaged in national and local efforts to implement financial reforms, we also have occasion to explore financial issues with colleagues around the globe. Most recently, I was invited to participate in conversations surrounding community reinvestment issues in France. As a result of a meeting held in Paris on January 30, French bankers, non-governmental organizations (NGOs), economists, and other decision makers are considering pursuing laws similar to the United States’ Home Mortgage Disclosure Act (HMDA) and Community Reinvestment Act (CRA).

The scramble to secure tax refund loan partnerships before the opening day of the 2010 tax season is the direct result of a regulatory crackdown that many consumer advocates believe was long overdue. With one major lender undercapitalized and another under increased scrutiny, it is clear regulators are beginning to take notice of the issue. However, both of these actions were taken to protect the safety and soundness of the banks themselves, not to protect the Illinois consumers who paid $114 million dollars in 2006 just to receive their tax refund loan a few days earlier than if they had waited for the IRS refund.