18 Burst results for "Rohit Chopra"
The Crypto Overnighter
"rohit chopra" Discussed on The Crypto Overnighter
"Upbit, one of the Republic of Korea's largest cryptocurrency exchanges, has been under siege. In the first half of 2023 alone, the exchange faced a staggering 159,000 hacking attempts. That's quite the number. And this isn't just a blip. It's a full-blown crisis, and the numbers are alarming. Compared to the first half of 2022, that's a 117% increase. If you go back to 2020, we're talking about a mind-boggling 1,800% surge in hacking attempts. The firm behind Upbit revealed these numbers, and they're not to be taken lightly. Upbit is a major player, with a 24-hour trading volume of around $1.2 billion. When a giant like this is under attack, it's a wake-up call for the entire ecosystem. So what's Upbit doing about it? They've ramped up their cold wallet holdings to 70%. That's of interest because cold wallets are less susceptible to hacks as they're offline. Hot wallets, on the other hand, are online and much more vulnerable. Upbit has also fortified their hot wallet security. And they've got good reason to be nervous. This is not their first rodeo. Upbit suffered a $50 million exploit back in 2019. Since then, they have not had one single breach. That's commendable, but clearly not enough. They recently had to halt Aptos token services due to a fake token infiltrating 400,000 wallets. Korean lawmaker representative Park Seung-jung is calling for action. He's urging the Ministry of Science and the ICT to conduct simulated security tests. The ministry's role in overseeing these exchanges is vague, and that needs to change. The crypto industry lost $1.4 billion to hacks and fraud this year alone. Upbit's crisis is a glaring example of the risks that come with the territory. It's a call to arms for better security measures, not just for Upbit, but for the entire crypto ecosphere. We just talked about Upbit's security woes, but what if I told you another exchange turned a crisis into an $8 million win? Yep, it's about HTX, and they've pulled off something of a coup. HTX, the exchange under Huobi Global, recently clawed back a staggering $8 million in stolen Ethereum. Now, how did they do it? By playing a high-stakes game with the hacker. Late last September, HTX's hot wallet was drained of 5,000 Ethereum, worth roughly $8 million. Now, we were just talking about how susceptible hot wallets are. The company did not waste any time. They contacted the hacker and claimed to know their identity. HTX then made an audacious offer, a 5% bounty worth around $400,000 in exchange for return of 95% of the stolen funds. Justin Sun, a Huobi Global investor and HTX advisor, took to social media to announce the successful recovery. He said, quote, the hacker made the right choice. The hacker returned all of the stolen funds, and HTX paid out a white hat bonus of 250 ETH. As listeners will know, the crypto world is no stranger to hacks. According to a report from blockchain security firm Immunify, there were 76 hacks on the crypto and Web3 projects in the third quarter of this year alone. That's a significant increase from 30 for the same period last year. But here's where it gets interesting. HTX decided to negotiate with the hacker rather than turning to law enforcement. Why? Well, because in the crypto world, sometimes it's just faster and more efficient to deal directly with the problem. Law enforcement can be slow, bureaucratic, and often ineffective when it comes to the fast-paced world of digital assets. That's why you can't depend on law enforcement to secure your financial assets or to get them back in the case of theft. HTX knew this and took matters into their own hands. This story raises questions about the ethics and legality of such bounties. Is it right to offer a bounty to a criminal? But then again, sometimes you have to fight fire with fire. From HTX's daring recovery to the US taking a new stance on crypto, the Consumer Financial Protection Bureau is eyeing crypto through the lens of the Electronic Fund Transfer Act, a protective move or a leash? Let's find out. The Consumer Financial Protection Bureau is considering applying the Electronic Fund Transfer Act, known as the EFTA, to cryptocurrencies. This is a federal law passed in 1978 to protect consumers during electronic fund transfers. Rohit Chopra is the Bureau's director. He spoke at a payments conference organized by the Brookings Institution. He said that the agency aims to reduce errors, hacks, and unauthorized transfers in the crypto space. The CFPB is exploring guidance to clarify how EFTA applies to private digital dollars and other virtual currencies. So why does this matter? EFTA regulations require financial institutions to inform consumers about their liability for unauthorized transfers. This is communicated before the first electronic transfer occurs on a user's account. This CFPB's move comes amid a staggering 150% year-on-year increase on crypto platform hacks. But there's more. The CFPB plans to issue orders to quote, "'certain large technology firms' to scrutinize their business practices, especially concerning the use of personal data in issuing private currency." The agency is also considering examining non-banks that offer payment platforms. Chopra even suggested that the Treasury's Financial Stability Oversight Council should classify some crypto activities as systemically important. This could empower other agencies with oversight tools to ensure that a stablecoin is, well, stable. The CFPB's move to potentially apply the Electronic Fund Transfer Act to crypto platforms is a significant development. It's a clear sign that the regulatory environment for cryptocurrencies is tightening, and the government is taking steps to exert more control over the industry. While the stated goal is to protect consumers from hacks and unauthorized transfers, one can't help but wonder if this is just another way for the government to keep tabs on crypto transactions. The application of EFTA to crypto could bring about a slew of new compliance requirements for crypto platforms. This could make it more difficult for smaller platforms to operate, potentially stifling innovation in the space. It's a classic case of the government stepping in with the pretext of consumer protection, but the real motive might be control and surveillance. Remember, they're demanding insight into your digital financial transactions on crypto exchanges as well, and it's for that reason that this development should be viewed with a critical eye. It's essential to question the government's motives behind such regulatory moves, especially when they have the potential to impact the crypto industry's growth and freedom. So while the CFPB's consideration to apply EFTA to crypto might seem like a move to protect consumers, it could very well be a significant problem. It's a development that warrants close attention, as it could have far-reaching implications for the crypto industry. We just looked at how the US government wants to regulate crypto. Now let's hear from someone who is not too happy about it. Tech bigwig Sam Altman has some bold words for central bank digital currencies. Don't miss this one.
Opening Arguments
"rohit chopra" Discussed on Opening Arguments
"So she resigned January 20th, 2021. She was replaced with the current CFPB director Rohit Chopra, and Chopra then reinstated one of those two payday lender rules, and that takes us to today. Cordray resigned to run against a wine for governor of Ohio. Yeah. Anyway. Fun fact didn't win. Okay. But The Oprah. That was, that's not. Well, that. Anyway, the rule Chopra put back in place is called the payment provision, and it's at 12 CFR section ten 41 8. And it just a quick note, CFR stands for the code of federal regulations, and it's exactly what it sounds like. So when Congress makes new laws, they go into the U.S. code, which is why we're citing USC all the time. It's not for the college or the sports conference. So anyway, when executive branch agencies make regulations pursuant to those laws, they go in the CFR. And the rule that Chopra made prohibits payday lenders from attempting to withdraw funds from a borrower's bank account after two consecutive failed attempts due to insufficient funds. That is bounce checks. Unless the borrower specifically authorizes additional attempts. So they can't continue coming to your account and trying to get money every time you bounce a check. And yes, payday lenders do strong arm the borrowers into authorizing those repeated attempts, but you know, it would be better to have a law that protects consumers than say not. Yeah, and in fact, that is another sub restriction on what was the common practice before this rule went into effect, which was payday lenders would when they handed you that giant four point font document to borrow the $300 in the first place. They would make you sign a pre authorization for future access to your bank account in advance before the first loan as part of that giant pile of paperwork that no one but me reads, right? So put it all together. The payday lender rules pretty modest, right? It doesn't solve the problem. It doesn't regulate these monsters out of existence, but you know, like you said, it's a step in the right direction. And the CFPB found quite sensibly that, you know, after a lender made two consecutive attempts to withdraw payments from your bank account and it fails and it bounces, quote, further attempts are very unlikely to succeed, yet they clearly result in further harms to consumers, right? In the form of the overdraft fees, right? So absent a new and specific authorization and not just that boilerplate pre authorization crap. The CFPB determined that it would be, quote, unfair and abusive. For lenders to continue to attempt to withdraw those payments. Right, that language is key because remember, an executive branch agency can not make a law, only Congress can make a law. What the agencies can do is enact rules when they're given the authority to do so by Congress, right? So here are the authority comes from the 2010 Dodd Frank act, which you might remember is that comprehensive response by Congress to the 22,008 financial crisis, which tanked the economy and led to all those foreclosures that displaced 10 million people from their homes, not great. Yeah, yeah. And so Dodd Frank, among other things, established the consumer financial protection bureau, and again Elizabeth Warren, that was her brainchild when she was a Harvard Law professor, right? And what they did was they created it as an independent bureau within the Federal Reserve system. That's right there in the law, right? 12 USC 54 91. And they authorized the CFPB to quote implement and where applicable enforce federal consumer financial law to ensure, among other things, that quote consumers are protected from unfair deceptive or abusive acts and practices. So put all that together. The Dodd Frank act said here. We've had unregulated capitalism that turned out to be terrible 10 million people were displaced from their homes. It tanked the economy. We're going to create a watchdog organization. And we're going to give that group a power to make rules that protect consumers from unfair deceptive or abusive acts and practices. And then, a decade later, that group that CFPB found that the way payday lenders try to collect loans is unfair deceptive or abusive. So case closed, right? Maybe not actually case closed, because as it turns out, the CFPB while not perfect. Actually, did and does a lot of good things because there are a lot of corporations out there engaged in unfair deceptive or abusive practices to our consumers. For example, in 2016, the CFPB sued and won a $132 million in restitution and another $40 million in civil penalties against a scumbag debt relief company called Morgan drexel. So, you know, when basically everyone who engages in unfair deceptive or abusive acts and practices towards consumers was hired by the Trump administration, one of those people's top priorities was to start a war on multiple fronts to try and nerf everything that the CFPB could possibly do to protect consumers. Yeah, and I don't want to get stuck on the rabbit trail, but they're most successful effort was a case called sail a law LLC versus the CFPB. That could be its own deep dive, maybe we will do it someday, but that was yet another Roberts court 5 four decision with the then four liberal justices in dissent that somehow found that Congress was not free to create the CFPB with any meaningful degree of independence from regime change, right? So as I alluded to, the original Dodd Frank bill provided that the director of the CFPB would serve a 5 year term and could only be fired for cause. And that was defined in the law as, quote, inefficiency neglect of duty or malfeasance in office. Now look, that's still pretty broad. That's still covers a lot of things, but, you know, it's not going to be fired at will. And so a different scumbag debt servicing firm. This one called sale a law decided to sue, arguing that Trump should be able to fire the director for any reason whatsoever because he's their God king and you know why not turn the whole thing into a political football despite the fact that Congress is clear intent was to do the exact opposite. And of course they won because, you know, John Roberts remains deeply conservative no matter what Politico tries to tell you every couple months. Amen to that sister. Anyway, that brings us to this lawsuit, which started life in 2018 back when both provisions of the payday lending rules were in place and Mick Mulvaney was active director, just as a little aside, remember that fun time when Mick Mulvaney was simultaneous like White House chief of staff, head of The Office of management budget and head of CFPB and I just looked this up because I was like, didn't this?
Bloomberg Radio New York
"rohit chopra" Discussed on Bloomberg Radio New York
"Law is being followed. So it might involve some new rules, some new guidance, and more to come on that. But the bottom line is that these firms have to be clear and upfront with consumers. We're already seeing more people get into trouble and we want to take steps to make sure that we prevent harm before it, spreads. And finally, let's go over those big banks that are regulated. I understand there will be some hearings in the Senate in the house next week. We will focus on some of those big consumer banks, all of the names of which we know. What are the issues do you think there will be identified there? What should be pursued? Yeah, what's interesting is that there's more interest now, not just from the big Wall Street banks, but also those super regional banks that have a huge footprint in the lives of consumers. I wouldn't be surprised to hear a lot about overdraft fees. We see that some of the large banks in particular have really been charging billions and billions of dollars in overdraft fees in recent years, but a lot of them have made big changes. So I think we can expect to hear about overdraft whenever any bank CEO is being asked questions. And of course, really the state of the economy. Overall, consumers have been pretty strong. But there's some places where they're borrowing a lot more, including auto loans. So I think the consumer and the family will be in focus on how they're managing through the economy. Thanks to Rohit Chopra, director of the consumer
Bloomberg Radio New York
"rohit chopra" Discussed on Bloomberg Radio New York
"In Europe and the UK and the U.S.. Thanks to doctor Monica Gandhi of the University of California. Coming up, the CFPB has a new report on those buy now pay later companies. I talked to director Rohit Chopra about what he found out that's next, you're listening to bounce of power on Bloomberg radio. This is Bloomberg. But I know of circle is spring together developers and entrepreneurs from around the world to continue building on the momentum of the ecosystem surrounding USD C we'll hear from thought leaders and change makers on where the digital asset industry is today and more importantly, where it's headed. Join us in San Francisco for circles converge 22 from September 27th to the 30th to shape the future of money and a digital asset ecosystem. Go to converge that circle dot com to register and learn more. About courage, I learned from my adoptive mom. She said sometimes you just gotta hold on, and no we'll get through this Mom, we are so high up on my hand. No, you hold my hand. Here we go. Learn about adopting a team from foster care. You can't imagine the reward. Visit adopt U.S. kids dot org to find out more. I learned patience for my adoptive dad. All he had to say was. Hey, you got this. Just breathe. Hey. We're pretty good. Yeah. I
Bloomberg Radio New York
"rohit chopra" Discussed on Bloomberg Radio New York
"Really change some of their minds about this business model. But I do think that this is something that is going to keep we're going to keep seeing in the market and our goal is to make sure that consumers are getting a fair shot understanding the differences can compare products and make sure that just like they get with a credit card that some of those same protections are with a buy now pay later loan. So my understanding is what you issued today was a report on this situation. But if you read through the report of the summary of the report, it's pretty clear that there are some issues potentially. Are we headed toward regulation as a practical matter? I understand this is not a notice of comment yet, but is that where we're headed? Well, I think I've asked the staff at our agency to serve as a whole host of options with the goal of just making sure that there is some fair competition when it comes to similar products. While buy now pay later doesn't currently rely on charging interest, we want to make sure that they're not seasoning on any loopholes and that the law is being followed. So it might involve some new rules, some new guidance, and more to come on that. But the bottom line is that these firms have to be clear and upfront with consumers. We're already seeing more people get into trouble and we want to take steps to make sure that we prevent harm before it spreads. And finally, let's go over those big banks that are regulated. I understand there will be some hearings in the Senate and the House next week. We will focus on some of those big consumer banks, all of the names of which we know. What are the issues do you think that will be identified there? What should be pursued? Yeah, what's interesting is that there's more interest now, not just from the big Wall Street banks, but also those super regional banks that have a huge footprint in the lives of consumers. I wouldn't be surprised to hear a lot about overdraft fees. We see that some of the large banks in particular have really been charging billions and billions of dollars in overdraft fees in recent years, but a lot of them have made big changes. So I think we can expect to hear about overdraft whenever any bank CEO is being asked questions. And of course, really the state of the economy. Overall, consumers have been pretty strong. But there's some places where they're borrowing a lot more, including auto loans. So I think the consumer and the family will be in focus on how they're managing through the economy. Thanks to Rohit Chopra, director of the consumer financial protection bureau. Coming up a sharply divided Congress has already gotten more done than many had expected. I'll talk with House majority leader steny Hoyer. That's next, you're listening to bounce a power on Bloomberg radio. This is Bloomberg. Three hoes circle is spring together developers and entrepreneurs from around the world to continue building on the momentum of the ecosystem surrounding USD C we'll hear from thought leaders and change makers on where the digital asset industry is today, and more importantly, where it's headed. Join us in San Francisco for circles converge 22 from September 27th to the 30th to shape the future of money and a digital asset ecosystem. Go to converge that circle dot com to
Bloomberg Radio New York
"rohit chopra" Discussed on Bloomberg Radio New York
"I'm Susanna Palmer in the Bloomberg newsroom. New York and other cities are straining under an influx of migrants sent by Republican governors from other states, but federal help may be on the way. Mayor Eric Adams says about 8500 asylum seekers are currently in New York's shelter system. The White House is helping cities that have received relocated migrants with federal emergency management agency representatives onsite to coordinate efforts to administer federal support. That, according to press secretary karine Jean Pierre on Friday, she added that funding is available for local governments and nonprofits through fema's emergency food and shelter program to support humanitarian relief from migrants. FedEx corp lost $11 billion in market value wiping out two years of stock gains. It's been a rough week for that company. And this is after withdrawing its earnings forecast on worsening business conditions in a potentially worrying sign for the global economy, the package delivery giant flagged weakness in Asia and challenges in Europe as it pulled its prior outlook and reported preliminary results for the latest quarter that fell well short of Wall Street expectations. Conditions could deteriorate further in the current period, according to FedEx. The company will take immediate steps to cut costs, including parking some aircraft, cutting workers, hours, and closing more than 90 of its roughly 2200 FedEx office locations. As in P global ratings as cut Kohl's credit rating to junk, we get more about that from Bloomberg's Charlie pellet. The move came after the department store chain slashed its sales and earnings guidance for the year. Sales at Kohl's declined by 8 and a half percent in the second quarter as inflation ate away at the discretionary income of Cole's middle income customers, the retailer has had a tumultuous few years as it struggled to deal with COVID induced store closures and supply chain woes. Global news 24 hours a day on air and on Bloomberg quicktake powered by more than 2700 journalists and analysts in more than 120 countries. I'm susannah Palmer. This is Bloomberg. Your listening to balance and power with David Westin on Bloomberg radio. Still to come this hour, inflation puts Democrats back on their heels for the midterm elections. I talk with the Democrat who serves as House majority leader steny Hoyer. But first, the consumer financial protection bureau is taking a hard look at those buy now pay later companies. I talked with director Rohit Chopra about his report. We did a study that collected data on millions of loans and what we found was that by now pay later, boomed during the pandemic, almost a tenfold increase over two years. And it's a product that in many ways is kind of traditional. You buy something and you pay it back over four installments, but it is supercharged with a modern data surveillance twist. So we looked at all the data and what we find is that yes, this is something that's going to be here to stay. But there's some big differences between how consumers are experiencing buy now pay later compared to what they experience with their credit card when it comes to those baseline protections. So as a first principle, how much are they subject to regulation already? Well, there's certainly subject to some of the laws and what we find is that they are a close substitute to a credit card, but don't necessarily observe the same things that the credit card companies have been observing. For example, the credit card companies have long been responsible for making sure there's some clear dispute provisions when you return something or when something goes wrong. There's pretty clear disclosures. We've all seen that box when we go get a credit card. And the list goes on and on. So one of the things that the report describes is those differences and we're going to be looking at ways to make sure that there's some parity between buy now pay later and credit cards. How many complaints are you getting? And do you have enforcement actions going? Well, so we do receive complaints on a whole host of products. We're going to be continuing our analysis of this. One of the things we describe in the report is that credit card issuers and others, their subject to routine oversight by bank regulators, but that hasn't been the case for buy now pay later. We're going to be looking how to make sure that they're held to the same account. Especially for us to understand how are they collecting all of this data on us. You know, the buy now pay later model depends on a lot of user surveillance ingesting our shopping movements and where we are and when we're buying things so that they can use that to lure us in to buy and borrow more. You're already seeing investors
Bloomberg Radio New York
"rohit chopra" Discussed on Bloomberg Radio New York
"Subject to some of the laws and what we find is that they are a close substitute to a credit card, but don't necessarily observe the same things that the credit card companies have been observing. For example, the credit card companies have long been responsible for making sure there's some clear dispute provisions when you return something or when something goes wrong. There's pretty clear disclosures. We've all seen that box when we go get a credit card. And the list goes on and on. So one of the things that the report describes is those differences and we're going to be looking at ways to make sure that there's some parity between by now pay later and credit cards. How many complaints are you getting? And do you have enforcement actions going? Well, so we do receive complaints on a whole host of products. We're going to be continuing our analysis of this. One of the things we describe in the report is that credit card issuers and others, their subject to routine oversight by bank regulators, but that hasn't been the case for buy now pay later. We're going to be looking how to make sure that they're held to the same account. Especially for us to understand how are they collecting all of this data on us. The buy now pay later model depends on a lot of user surveillance ingesting our shopping movements and where we are and when we're buying things so that they can use that to lure us in to buy and borrow more. You're already seeing investors really change some of their minds about this business model. But I do think that this is something that is going to keep we're going to keep seeing in the market and our goal is to make sure that consumers are getting a fair shot understanding the differences can compare products and make sure that just like they get with a credit card that some of those same protections are with a buy now pay later loan. So my understanding is what you issued today was a report on this situation. But if you read through the report of the summary of the report, it's pretty clear that there are some issues potentially. Are we headed to a regulation as a practical matter? I understand this is not a notice of comment yet, but is that where we're headed? Well, I think I've asked the staff at our agency to serve as a whole host of options with the goal of just making sure that there is some fair competition when it comes to similar products. While buy now pay later doesn't currently rely on charging interest, we want to make sure that they're not seizing on any loopholes and that the law is being followed. So it might involve some new rules, some new guidance, and more to come on that. But the bottom line is that these firms have to be clear and upfront with consumers. We're already seeing more people get into trouble and we want to take steps to make sure that we prevent harm before it spreads. And finally, let's go over those big banks that are regulated. I understand there will be some hearings in the Senate and the House next week, we will focus on some of those big consumer banks, all of the names of which we know. What are the issues do you think that will be identified there? What should be pursued? Yeah, what's interesting is that there's more interest now, not just from the big Wall Street banks, but also those super regional banks that have a huge footprint in the lives of consumers. I wouldn't be surprised to hear a lot about overdraft fees. We see that some of the large banks in particular have really been charging billions and billions of dollars in overdraft fees in recent years, but a lot of them have made big changes. So I think we can expect to hear about overdraft whenever any bank CEO is being asked questions. And of course, really the state of the economy. Overall, consumers have been pretty strong. But there's some places where they're borrowing a lot more, including auto loans. So I think the consumer and the family will be in focus on how they're managing through the economy. Thanks to Rohit Chopra, director of the consumer financial protection bureau. Coming up a sharply divided Congress is already gotten more done than many had expected. I'll talk with House majority leader steny Hoyer. That's next, you're listening to bounce a power on Bloomberg radio. This is Bloomberg. Market. Circle is bringing together developers and entrepreneurs from around the world. Join us in San Francisco for circles converge 22 from September
Bloomberg Radio New York
"rohit chopra" Discussed on Bloomberg Radio New York
"Bureau director Rohit Chopra That's next you're listening to balance of power on Bloomberg radio This is Bloomberg Hi how can I help you today As a McDonald's employee you say those words quite often But how about when you need help Like consulting a doctor Hi How can I help you today When you work for a McDonald's restaurant we take care of you like family With free virtual doctors visits including getting prescriptions and refills for you and everyone in your family Apply today at careers McDonald's dot com and find out more The benefits described here in are only available at participating restaurants Burden LLP accountants and advisers presents industry chat who is Jeff Kovacs partner and head of the technology and life sciences practice Early to mid stage technology companies often ask what is my company worth While valuing companies at these stages is often an art with little science valuations are crucial to negotiate with investors create equity plans for employees or prepare for a liquidity event Understanding the factors that impact evaluation better positions executives to maximize value for founders investors and employees helping clients scale their business and plan for the future is what we do at burden If you're a technology company executive let Burton help you develop innovative solutions to enhance your company's value and fuel its growth For more industry chat from burden accountants and advisers visit burden LLP dot com That's BER DON LLP dot com Burden accountants and advisers We listen we solve we do Makes innovation happen It also makes entrepreneurs like Anya o'dwyer founder of innovate a tech driven civil engineering and construction management firm Anya says and JIT is defining the future Engineer IT's extremely important as a hub of disciplines all in one space with all of these brilliant minds NGOs roll is huge when it comes to defining the future and how from an interdisciplinary point of view they have it all there whether it's the innovation hub the makers space and JIT is already creating bash collaboration between the disciplines and you have civil engineers speaking to programmers speaking to electrical engineers And together they're creating advancements that we wouldn't have been able to do without those three minds coming together and solving a problem as one rather than solving it in isolation And JIT New Jersey institute of technology Learn more at nj IT dot EDU This is a Bloomberg money minute a growing industry is making a splash Last year car wash purchases topped $13 billion an all time high for the industry Eric Wolfe CEO.
Bloomberg Radio New York
"rohit chopra" Discussed on Bloomberg Radio New York
"Collapse of the Terra stablecoin and its token Luna shook cryptocurrency markets and caught the attention of regulators and lawmakers in Washington I talked to someone directly involved in figuring out how to regulate cryptocurrency and stablecoins Director of the consumer financial protection bureau Rohit Chopra We have to look at actually what just happened last week A lot of people thought that a stablecoin was just going to be as good as a dollar just like depositing it in an FDIC insured account but they're learning that it's not So stablecoins are something that all the regulators are looking at Most stablecoin use right now is really for speculative trading to go in and out of cryptocurrencies And people wonder is it going to be one day used for consumer payments And many are thinking it's not ready yet Is it like a money market effectively Well in some ways people compare it to that but do we want that How do we want to regulate it And for what use when it's at an investment the SEC is working on things But when it comes to consumer payments it's not just stablecoins it's all sorts of emergence emerging payment technologies We see on our mobile device and others And we need to make sure we understand everything from privacy security and when people have errors or deal with fraud that they have some recourse And right now many people don't know where to turn And let's be clear it's very complicated It's certainly more confident that I'm going to understand you understand it much better than I do But you can understand why people are out in the marketplace saying in the meantime I'm losing money and we're waiting for regulation And in fact a lot of the crypto people are saying we want regulation We want some rules of the road So realistically when do you think we can have some foreign regulation decided on Well I think you're going to see a lot of movement this year in terms of The White House has asked all the regulators to publish a set of reports There's already activity going on at the regulators to to me we've got to crack this code of what do we want the future of our payment system to look like The fed is going to be launching its new fed now system which is going to create really real time payments for consumers and businesses But again people need to know that that stable coin is not the same as depositing it in an FDIC insured account Well I think you have caused some ripples and asking questions about payment systems It goes beyond cryptocurrencies To some of the big tech things like that people are saying wait a second Where is this going How does it work How does this fit together from your point of view in terms of protecting the consumer Yeah I mean I look at what is happening in China where you see AliPay WeChat pay so ubiquitous and combining with their broader tech businesses We need to ask ourselves do we want Google Do we not want Facebook controlling a lot of flow of payments and using that data in ways we may not understand Let's talk about something a little more traditional which is banks And bank mergers Give us a sense of that There was a long time that it was thought that there was a pent up demand in the regional banks for mergers Are they getting together now Well you do see markets pushing for some mergers And right now at the FDIC the board has launched a review of our bank merger policy Bank merger policy has kind of been the same for a while but there's a big question right now to what extent does a big merged firm including regional banks What could that cause a threat to financial stability if it failed The markets have not particularly liked 2022 so far And you take last week was really brutal for a lot of investors as a practical matter Inflation is driving it to tightening fiscal monetary policy is running Where does it show up in terms of consumer credit Because I see some reports that people are putting up more and more in their credit card balances That's right During the pandemic credit card debt outstanding actually went down quite a bit People were paying down their balances And then in late 2021 it started coming up again And actually quite sharply I don't actually think that that's fully driven by inflation I think that's just people are getting higher wages spending more and there's a lot of pent up demand So we're watching that pretty closely We want to make sure that people can shop get good rates but I do expect it to continue to go up Of course inflation for many households it's really pinching them especially if they're buying a car.
Bloomberg Radio New York
"rohit chopra" Discussed on Bloomberg Radio New York
"The collapse of the Terra stablecoin and its token Luna shook cryptocurrency markets and caught the attention of regulators and lawmakers in Washington I talked to someone directly involved in figuring out how to regulate cryptocurrency and stablecoins Director of the consumer financial protection bureau Rohit Chopra We have to look at actually what just happened last week A lot of people thought that a stablecoin was just going to be as good as a dollar just like depositing it in an FDIC insured account but they're learning that it's not So stablecoins are something that all the regulators are looking at Most stablecoin use right now is really for speculative trading to go in and out of cryptocurrencies And people wonder is it going to be one day used for consumer payments And many are thinking it's not ready yet Is it like a money market effectively Well in some ways people compare it to that but do we want that How do we want to regulate it And for what use when it's an investment the SEC is working on things But when it comes to consumer payments it's not just stablecoins it's all sorts of emergence emerging payment technologies We see on our mobile device and others And we need to make sure we understand everything from privacy security and when people have errors or deal with fraud that they have some recourse And right now many people don't know where to turn And let's be clear it's very complicated It's certainly more complicated than I'm going to understand You understand it much better than I do But you can understand why people are out in the marketplace saying in the meantime I'm losing money and we're waiting for regulation And in fact a lot of the crypto people are saying we want regulation We want some rules of the road So realistically when do you think we can have some foreign regulation decided on Well I think you're going to see a lot of movement this year in terms of The White House has asked all the regulators to publish a set of reports There's already activity going on at the regulators to to me we've got to crack this code of what do we want the future of our payment system to look like The fed is going to be launching its new fed now system which is going to create really real time payments for consumers and businesses But again people need to know that that stable coin is not the same as depositing it in an FDIC insured account Well I think you have caused some ripples and asking questions about payment systems that goes beyond cryptocurrencies To some of the big tech things like that people are saying well wait a second Where is this going How does it work How does this fit together from your point of view in terms of protecting the consumer Yeah I mean I look at what is happening in China where you see AliPay WeChat pay so ubiquitous and combining with their broader tech businesses We need to ask ourselves do we want Google Do we not want Facebook controlling a lot of flow of payments and using that data in ways we may not understand Let's talk about something a little more traditional which is banks And bank mergers Give us a sense of that There was a long time that it was thought that there was a pent up demand in the regional banks for mergers Are they getting together now Well you do see markets pushing for some mergers And right now at the FDIC the board has launched a review of our bank merger policy Bank merger policy has kind of been the same for a while but there's a big question right now to what extent does a big merged firm including regional banks What could that cause a threat to financial stability if it failed The markets have not particularly liked 2022 so far And you take last week was really brutal for a lot of investors as a factor of inflation is driving it to tightening fiscal monetary policy is running Where does it show up in terms of consumer credit Because I see some reports that people are putting up more and more in their credit card balances That's right During the pandemic credit card debt outstanding actually went down quite a bit People were paying down their balances And then in late 2021 it started coming up again And actually quite sharply I don't actually think that that's fully driven by inflation I think that's just people are getting higher wages spending more and there's a lot of pent up demand So we're watching that pretty closely We want to make sure that people can shop get good rates but I do expect it to continue to go up Of course inflation for many households it's really pinching them especially if they're buying a car Both new and used car prices new car prices are often selling well above suggested price And so that is something that we're seeing in elevated auto loans and a lot more auto loans outstanding People are getting higher wages we're not seeing delinquency levels go up yet but depending on how the shape of the economy moves We could see that change Are you seeing abusive practices creep in Whether it's through non disclosure or otherwise Well across the across the markets we're always going to have scams and fraud and we're going we're looking at that But I'm really focused on big firms that repeatedly break the law Small firms they often regulators lay the hammer down on them But a lot of the largest financial institutions even when they break the law over and over and over again it just feels like nothing happens We are changing that mindset and making sure that the price of violating the law repeatedly is much higher than the benefits Thanks to CFPB director Rohit Chopra Coming up supply chain rose continue with no end in sight I'll.
Bloomberg Radio New York
"rohit chopra" Discussed on Bloomberg Radio New York
"Collapse of the Terra stablecoin and its token Luna shook cryptocurrency markets and caught the attention of regulators and lawmakers in Washington I talked to someone directly involved in figuring out how to regulate cryptocurrency and stablecoins Director of the consumer financial protection bureau Rohit Chopra We have to look at actually what just happened last week A lot of people thought that a stablecoin was just going to be as good as a dollar just like depositing it in an FDIC insured account but they're learning that it's not So stablecoins are something that all the regulators are looking at Most stablecoin use right now is really for speculative trading to go in and out of cryptocurrencies And people wonder is it going to be one day used for consumer payments And many are thinking it's not ready yet Is it like a money market effectively Well in some ways people compare it to that but do we want that How do we want to regulate it And for what use when it's at an investment the SEC is working on things But when it comes to consumer payments it's not just stablecoins it's all sorts of emergence emerging payment technologies We see on our mobile device and others And we need to make sure we understand everything from privacy security and when people have errors or deal with fraud that they have some recourse And right now many people don't know where to turn And let's be clear it's very complicated It's certainly more confident that I'm going to understand you understand it much better than I do But you can understand why people are out in the marketplace saying in the meantime I'm losing money and we're waiting for regulation And in fact a lot of the crypto people are saying we want regulation We want some rules of the road So realistically when do you think we can have some foreign regulation decided on Well I think you're going to see a lot of movement this year in terms of The White House has asked all the regulators to publish a set of reports There's already activity going on at the regulators to to me we've got to crack this code of what do we want the future of our payment system to look like The fed is going to be launching its new fed now system which is going to create really real time payments for consumers and businesses But again people need to know that that stable coin is not the same as depositing it in an FDIC insured account Well I think you have caused some ripples and asking questions about payment systems that goes beyond cryptocurrencies Some of the big tech things like that people are saying wait a second Where is this going How does it work How does this fit together from your point of view in terms of protecting the consumer Yeah I mean I look at what is happening in China where you see AliPay WeChat pay so ubiquitous and combining with their broader tech businesses We need to ask ourselves do we want Google Do we not want Facebook controlling a lot of flow of payments and using that data in ways we may not understand Let's talk about something a little more traditional which is banks And bank mergers Give us a sense of that There was a long time that it was thought that there was a pent up demand in the regional banks for mergers Are they getting together now Well you do see markets pushing for some mergers And right now at the FDIC the board has launched a review of our bank merger policy The bank merger policy has kind of been the same for a while but there's a big question right now to what extent does a big merged firm including regional banks What could that cause a threat to financial stability if it failed The markets have not particularly liked 2022 so far And you take last week was really brutal for a lot of investors as a practical matter Inflation is driving it to tightening fiscal monetary policy is running Where does it show up in terms of consumer credit Because I see some reports that people are putting up more and more in their credit card balances That's right During the pandemic credit card debt outstanding actually went down quite a bit People were paying down their balances And then in late 2021 it started coming up again And actually quite sharply I don't actually think that that's fully driven by inflation I think that's just people are getting higher wages spending more and there's a lot of pent up demand So we're watching that pretty closely We want to make sure that people can shop get good rates but I do expect it to continue to go up Of course inflation for many households It's really pinching them especially if they're buying a car Both new and used car prices new car prices are often selling well above suggested price And so that is something that we're seeing in elevated auto loans and a lot more auto loans outstanding So people are getting higher wages we're not seeing delinquency levels go up yet but depending on how the shape of the economy moves We could see that change Are you seeing abusive practices creep in Whether it's through non disclosure or otherwise Well across the across the markets we're always going to have scams and fraud and we're going we're looking at that But I'm really focused on big firms that repeatedly break the law Small firms they often regulators lay the hammer down on them But a lot of the largest financial institutions even when they break the law over and over and over again it just feels like nothing happens We are changing that mindset and making sure that the price of violating the law repeatedly is much higher than the benefits Thanks to CFPB director Rohit Chopra Coming up supply chain rose continue with no end.
Bloomberg Radio New York
"rohit chopra" Discussed on Bloomberg Radio New York
"Collapse of the Terra stablecoin and its token Luna shook cryptocurrency markets and caught the attention of regulators and lawmakers in Washington I talked to someone directly involved in figuring out how to regulate cryptocurrency and stablecoins Director of the consumer financial protection bureau Rohit Chopra We have to look at actually what just happened last week A lot of people thought that a stablecoin was just going to be as good as a dollar just like depositing it in an FDIC insured account but they're learning that it's not So stablecoins are something that all the regulators are looking at Most stablecoin use right now is really for speculative trading to go in and out of cryptocurrencies And people wonder is it going to be one day used for consumer payments and many are thinking it's not ready yet Is it like a money market effectively Well in some ways people compare it to that but do we want that How do we want to regulate it And for what use when it's at an investment the SEC is working on things But when it comes to consumer payments it's not just stablecoins it's all sorts of emergence emerging payment technologies We see on our mobile device and others And we need to make sure we understand everything from privacy security and when people have errors or deal with fraud that they have some recourse and right now many people don't know where to turn And let's be clear it's very complicated It's certainly more complicated than I'm going to understand You understand it much better than I do But you can understand why people are out in the marketplace saying in the meantime I'm losing money and we're waiting for regulation And in fact a lot of the crypto people are saying we want regulation We want some rules of the road So realistically when do you think we can have some foreign regulation decided on Well I think you're going to see a lot of movement this year in terms of The White House has asked all the regulators to publish a set of reports There's already activity going on at the regulators to to me we've got to crack this code of what do we want the future of our payment system to look like The fed is going to be launching its new fed now system which is going to create really real time payments for consumers and businesses But again people need to know that that stable coin is not the same as depositing it in an FDIC insured account Well I think you have caused some ripples and asking questions about payment systems It goes beyond cryptocurrencies To some of the big tech things like that people are saying well wait a second Where is this going How does it work How does this fit together from your point of view in terms of protecting the consumer Yeah I mean I look at what is happening in China where you see AliPay WeChat pay so ubiquitous and combining with their broader tech businesses We need to ask ourselves do we want Google Do we not want Facebook controlling a lot of flow of payments and using that data in ways we may not understand Let's talk about something a little more traditional which is banks And bank mergers Give us a sense of that There was a long time that it was thought that there was a pent up demand in the regional banks for mergers Are they getting together now Well you do see markets pushing for some mergers And right now at the FDIC the board has launched a review of our bank merger policy The bank merger policy has kind of been the same for a while but there's a big question right now to what extent does a big merged firm including regional banks What could that cause a threat to financial stability if it failed The markets have not particularly liked 2022 so far And you take last week was really brutal for a lot of investors as a practical matter Inflation is driving it tightening fiscal monetary policy is running Where does it show up in terms of consumer credit Because I see some reports that people are putting up more and more in their credit card balances That's right During the pandemic credit card debt outstanding actually went down quite a bit People were paying down their balances And then in late 2021 it started coming up again And actually quite sharply I don't actually think that that's fully driven by inflation I think that's just people are getting higher wages spending more and there's a lot of pent up demand So we're watching that pretty closely We want to make sure that people can shop get good rates but I do expect it to continue to go up Of course inflation for many households it's really pinching them especially if they're buying a car Both new and used car prices new car prices are often selling well above suggested price And so that is something that we're seeing in elevated auto loans and a lot more auto loans outstanding So people are getting higher wages we're not seeing delinquency levels go up yet but depending on how the shape of the economy moves We could see that change Are you seeing abusive practices creep in Whether it's through non disclosure or otherwise Well across the across the markets we're always going to have scams and fraud and we're going we're looking at that but I'm really focused on big firms that repeatedly break the law Small firms they often regulators lay the hammer down on them But a lot of the largest financial institutions even when they break the law over and over and over again it just feels like nothing happens We are changing that mindset and making sure that the price of violating the law repeatedly is much higher than the benefits Thanks to CFPB director Rohit Chopra Coming up supply chain rose continue with no end.
Bloomberg Radio New York
"rohit chopra" Discussed on Bloomberg Radio New York
"I'm Mark crumpton This is Bloomberg David Thank you so much Mark Well one of the big stories from last week actually had to do with cryptocurrency and so called stablecoins with some reports that people lost as much as $260 billion when particularly some of those stablecoins came off of their dollar peg We turned out to somebody who's really involved in figuring out how to regulate cryptocurrencies and stablecoin He is Rohit Chopra He's director of the consumer financial protection bureau So we're going to thank you so much for being back with us Great to have you here So where are we on regulation I know that The White House is commissioned you and others to take a look at it give a report back We're going to get it over a period of months But in the meantime the marketplace is going ahead is the government behind Well we have to look at actually what just happened last week A lot of people thought that a stablecoin was just going to be as good as a dollar just like depositing it in an FDIC insured account but they're learning that it's not So stablecoins are something that all the regulators are looking at Most stablecoin use right now is really for speculative trading to go in and out of cryptocurrencies And people wonder is it going to be one day used for consumer payments and many are thinking it's not ready yet Is it like a money market effectively Well in some ways people compare it to that but do we want that How do we want to regulate it And for what use when it's at an investment the SEC is working on things But when it comes to consumer payments it's not just stablecoins it's all sorts of emergence emerging payment technologies We see on our mobile device and others And we need to make sure we understand everything from privacy security and when people have errors or deal with fraud that they have some recourse And right now many people don't know where to turn And let's be clear it's very complicated It's certainly more complicated than I'm going to understand You understand it much better than I do But you can understand why people are out in the marketplace saying in the meantime I'm losing money and we're waiting for regulation And in fact a lot of the crypto people are saying we want regulation We want some rules of the road So realistically when do you think we can have some foreign regulation decided on Well I think you're going to see a lot of movement this year in terms of The White House that's asked all the regulators to publish a set of reports There's already activity going on at the regulators to to me we've got to crack this code of what do we want the future of our payment system to look like The fed is going to be launching its new fed now system which is going to create really real-time payments for consumers and businesses But again people need to know that that stable coin is not the same as depositing it in an FDIC insured account Well I think you have caused some ripples and asking questions about payment systems It goes beyond cryptocurrencies To some of the big tech things like that people are saying well wait a second Where is this going How does it work How does this fit together from your point of view in terms of protecting the consumer Yeah I mean I look at what is happening in China where you see AliPay WeChat pay so ubiquitous and combining with their broader tech businesses You know we need to ask ourselves do we want Google Do we not want Facebook controlling a lot of flow of payments and using that data in ways we may not understand Let's talk about something a little more traditional which is banks And bank mergers Give us a sense of that There was a long time that was thought that there was a pent up demand in the regional banks for mergers Are they getting together now Well you do see markets pushing for some mergers And right now at the FDIC the board has launched a review of our bank merger policy Bank merger policy has kind of been the same for a while but there's a big question right now to what extent does a big merged firm including regional banks What could that cause a threat to financial stability if it failed We saw how many of those large institutions needed bailouts the last time And I think all the regulators want to prevent that again We also want to make sure that rural areas are in deserts and that mergers don't lead to mass closures We want to make sure people have a lot of choices And sometimes we're seeing across the economy how concentration may be limiting the ability for consumers to have choice and frankly monopolization can bully out the next great idea The markets have not particularly liked 2022 so far And you take last week was really brutal for a lot of investors as a practical matter Inflation is driving it to tightening fiscal monetary policy is running Where does it show up in terms of consumer credit Because I see some reports of people are putting up more and more in their credit card balances That's right During the pandemic credit card debt outstanding actually went down quite a bit People were paying down their balances And then in late 2021 it started coming up again And actually quite sharply I don't actually think that that's fully driven by inflation I think that's just people are getting higher wages spending more and there's a lot of pent up demand So we're watching that pretty closely We want to make sure that people can shop get good rates but I do expect it to continue to go up Of course inflation for many households It's really pinching them especially if.
Bloomberg Radio New York
"rohit chopra" Discussed on Bloomberg Radio New York
"Book hotel rooms and these bank fees add up to tens of billions of dollars that drain money from a family budgets I know you're asking for input you want public comment on this people to weigh in and describe what their most egregious junk fees are I just wonder what comes next Is that going to be followed by fines or other enforcement action against banks Well in some cases we're going to look at rules The CFPB is a part of the Federal Reserve system We now administer a lot of the rules that we took over From our partners at the fed they relate to bank accounts credit cards and so many other products But you're right enforcement may be part of this too If companies are colluding if banks are engaged in practices to manipulate how they can harvest more fees sometimes that breaks the law and they'll have to face a liability for that How about crypto Traders face some pretty hefty fees in the crypto world I wonder if the CFPB plans to go there is crypto in your portfolio Well you know we're want to hear from everybody in terms of all the products that they're dealing with It's our authorities going to depend on the specific facts but as more and more people are transferring money whether it's peer to peer payments crypto or anything else We want to hear about the churn and the fees that they're incurring In some cases those fees may be way out of line with the actual cost or the service that they're getting What does this mean for the CFPB at this stage of the game as part of the Biden administration Are you looking at a more aggressive posture in dealing with this type of thing than what we saw for instance in the Trump administration Well look our job is to enforce the law and that's what I am going to do We want to make sure markets are competitive President Biden convened many agency heads and cabinet members And we talked about all we need to do to attack the lack of competition including in the financial sector where a handful of giants often dominate certain markets So at the end of the day we want to make sure that the more we have competition the more that prices are lower that people have more choices that we get more innovation And that's going to be top of mind for us at the CFP Is this a big conversation about inflation in disguise here Is that what we're really talking about I know the administration is found a number of ways to get to inflation It's a very narrow focused effort Is this one of them Well I see this as a long-standing problem When you go to the supermarket you can see when prices are going up When you buy things online some people can feel when prices are changing A lot of times in banking these fees are on the back end It's advertised as free or low fee but in reality people get penalized and many financial institutions make big money on this fee creep that we're seeing And ultimately the more we can make it clearer and competitive some of those fees might go away Some banks are already announcing they're getting rid of overdraft fees and NSF fees And I think we're going to see more of that Director you were once the agency's student loan ombudsman so you know a bit about this I wonder why does the Biden administration continue to resist calls to forgive student loan debt from the likes of senator Elizabeth Warren and other progressives Well you know that's really a decision for the education department for the CFPB They see PBs enforcement action have canceled debt especially when it's been illegally or legally originated We'll wait for a decision I am definitely worried about the return to repayment which is going to start in a few months We need to make sure that borrowers who have been cheated or borrowers who know their rights And I think we're all waiting for a decision on what might happen when it comes to student loan Thanks to CFPB director Rohit Chopra coming up what went wrong With the rollout of 5G I'll ask former FCC chair ajit pai coming up next You're listening to balance of power on Bloomberg radio This is Bloomberg You come into bed Hun Yep honey I'll be right there I just gotta turn out the light Ow.
Bloomberg Radio New York
"rohit chopra" Discussed on Bloomberg Radio New York
"Adams he says please don't go out But the best to be off the road select DS and why do they job as they clean the streets So be careful bundle up good day to stay home If you don't have to go out Adams says if you are on the road you might get in the way of plows and emergency vehicles He says just let city employees do the job of cleaning up the mess New York's indoor mask or a vax mandate for businesses and schools will be extended in extra two weeks through February 10th that according to governor Cathy hogel speaking yesterday The mandate first put into place on December 10th requires businesses without mandatory vaccination policies to require all workers customers and guests to wear masks to prevent the spread of the coronavirus PBF Energy plans to restore production of some transportation fuels at its paws borough New Jersey facility We get more about that from Bloomberg's Charlie pellet Output of refined products was halted in late 2020 when oil consumption was decimated by COVID Sources say it will take several months to repair equipment needed to restart production units higher fuel output is welcome news for consumers in the northeast which has become reliant on imports because of a dearth of local production Charlie Bloomberg radio Global news 24 hours a day on air and on Bloomberg quicktake powered by more than 2700 journalists and analysts in more than 120 countries I'm susannah Palmer This is Bloomberg You're listening to balance and power with David Weston on Bloomberg radio This week the consumer financial protection bureau launched a broad review of what it calls exploitive junk fees the U.S. banks are charging consumers and for more on the agency's plans I talked to CFPB director Rohit Chopra Americans are concerned about rising prices and fee creep across so many products Last year we reported how overdraft and NSF fees totaled $15 billion tens of billions of dollars credit cards mortgage closing costs and we want to look at all of them to see where we can make sure this market is more competitive honest and upfront $15 billion a lot of money That was the banking revenue as you mentioned from 2019 that came only from overdraft fees It's something that is an issue for a lot of consumers But are the banks actually doing anything wrong Are they breaking the law Well in some cases the facts depend on the facts that are going to tell us if they're breaking the law The CFPB has done a number of enforcement actions related to overdraft practices related to other feed practices But I think I'm more concerned about again the creep of fees at the back end rather than advertising the true price upfront And we see this across the economy when you buy tickets online when you book hotel rooms and these bank fees add up to tens of billions of dollars that drain money from a family budgets I know you're asking for input you want public comment on this people to weigh in and describe what their most egregious junk fees are I just wonder what comes next Is that going to be followed by fines or other enforcement action against banks Well in some cases we're going to look at rules The CFPB is a part of the Federal Reserve system We now administer a lot of the rules that we took over from our partners at the fed They relate to bank accounts credit cards and so many other products but you're right enforcement may be part of this too If companies are colluding if banks are engaged in practices to manipulate how they can harvest morphe's sometimes that breaks the law and they'll have to face a liability for that How about crypto Traders face some pretty hefty fees in the crypto world I wonder if the CFPB plans to go there is crypto in your portfolio Well you know we're want to hear from everybody in terms of all the products that they're dealing with It's our authorities going to depend on the specific facts but as more and more people are transferring money whether it's peer to peer payments crypto or anything else We want to hear about the churn and the fees that they're incurring In some cases those fees may be way out of line with the actual cost or the service that they're getting What does this mean for the CFPB at this stage of the game as part of the Biden administration Are you looking at a more aggressive posture in dealing with this type of thing than what we saw for instance in the Trump administration Well look our job is to enforce the law and that's what I am going to do We want to make sure markets are competitive President Biden convened many agency heads and cabinet members And we talked about all we need to do to attack the lack of competition including in the financial sector where a handful of giants often dominate certain markets So at the end of the day we want to make sure that the more we have competition the more that prices are lower that people have more choices that we get more innovation And that's going to be top of mind for us at the CFP Is this a big conversation about inflation in disguise here Is that what we're really talking about I know the administration is found a number of ways to get to inflation It's a very narrow focused effort Is this one of them Well I see this as a long-standing problem You know when you go to the supermarket you can see when prices are going up When you buy things online some people can feel when prices are changing A lot of times in banking these fees are on the back end It's advertised as free or low fee but in reality people get penalized and many financial institutions make big money on this fee creep that we're seeing And ultimately the more we can make it clearer and competitive some of those fees might go away Some banks are already announcing they're getting rid of overdraft fees and NSF fees And I think we're going to see more of that Director you were once the agency's student loan ombudsman so you know a bit about this I wonder why does the Biden administration continue to resist calls to forgive student loan debt from the likes of senator Elizabeth Warren and other progressives Well you know that's really a decision for the education department for the CFPB They CFPB is enforcement action Have canceled debt especially when it's been illegally or legally originated We'll wait for a decision I am definitely worried about the return to repayment which is going to start in a few months We need to make sure that borrowers who have been cheated or borrowers who know their rights And I think we're all waiting for a decision on what might happen when it comes to student loan Thanks to.
Bloomberg Radio New York
"rohit chopra" Discussed on Bloomberg Radio New York
"Are on the ground already There is blowing snow very few sidewalks have been shoveled That said if you do shovel the snow the wind will likely blow it all back again Roads are another story a major thoroughfare like queens boulevard which I'm standing on now has seen the plows come by multiple times People are heating warnings to stay off the roads In forest hills queens Charlie Bloomberg radio New York State delayed a decision on whether to allow operations to continue at a power plant used for Bitcoin mining We get more about that from Bloomberg's Denny's fellow grani The department of environmental conservation's decision on this plan to operate by Greenwich generation holdings will now come by March 31st and that is two months later than originally targeted This plant is in Dresden in the finger lakes region of New York and the delay will allow the DEC to review thousands of public comments on the issue Environmental activists and the cryptocurrency industry have been closely watching greenidge's application for signs on whether New York will allow Bitcoin mining operations a dozens of dormant power plants across the state deduce Pellegrini Bloomberg radio T mobile U.S. is taking a stand it will fire corporate employees who are not fully vaccinated by April 2nd That according to a memo to staff obtained by Bloomberg news Global news 24 hours a day on air and on Bloomberg quicktake powered by more than 2700 journalists and analysts in more than 120 countries I'm susannah Palmer This is Bloomberg You're listening to balance and power with David Weston on Bloomberg radio This week the consumer financial protection bureau launched a broad review of what it calls exploitive junk fees the U.S. banks are charging consumers and for more on the agency's plans I talked to CFPB director Rohit Chopra Americans are concerned about rising prices and fee creep across so many products Last year we reported how overdraft and NSF fees totaled $15 billion tens of billions of dollars credit cards mortgage closing costs and we want to look at all of them to see where we can make sure this market is more competitive honest and upfront $15 billion a lot of money That was the banking revenue as you mentioned from 2019 that came only from overdraft fees It's something that is an issue for a lot of consumers But are the banks actually doing anything wrong Are they breaking the law Well in some cases the facts depend on the facts that are going to tell us if they're breaking the law The CFPB has done a number of enforcement actions related to overdraft practices related to other feed.
Bloomberg Radio New York
"rohit chopra" Discussed on Bloomberg Radio New York
"This week the consumer financial protection bureau launched a broad review of what it calls exploitive junk fees the U.S. banks are charging consumers and for more on the agency's plans I talked to CFPB director Rohit Chopra Americans are concerned about rising prices and fee creep across so many products last year we reported how overdraft and NSF fees totaled $15 billion tens of billions of dollars credit cards mortgage closing costs and we want to look at all of them to see where we can make sure this market is more competitive honest and upfront $15 billion a lot of money That was the banking revenue as you mentioned from 2019 that came only from overdraft fees It's something that is an issue for a lot of consumers But are the banks actually doing anything wrong Are they breaking the law Well in some cases the facts depend on the facts that are going to tell us if they're breaking the law The CFPB has done a number of enforcement actions related to overdraft practices related to other feed practices But I think I'm more concerned about again the creep of fees at the back end rather than advertising the true price to true price upfront And we see this across the economy when you buy tickets online when you book hotel rooms and these bank fees add up to tens of billions of dollars that drain money from a family budgets I know you're asking for input you want public comment on this people to weigh in and describe what their most egregious junk fees are I just wonder what comes next Is that going to be followed by fines or other enforcement action against banks Well in some cases we're going to look at rules The CFPB is a part of the Federal Reserve system We now administer a lot of the rules that we took over From our partners at the fed they relate to bank accounts credit cards and so many other products but you're right enforcement may be part of this too If companies are colluding if banks are engaged in practices to manipulate how they can harvest morphe's sometimes that breaks the law and they'll have to face a liability for that How about crypto Traders faced some pretty hefty fees in the crypto world I wonder if the CFPB plans to go there is crypto in your portfolio Well we're want to hear from everybody in terms of all the products that they're dealing with It's our authorities going to depend on the specific facts but as more and more people are transferring money whether it's peer to peer payments crypto or anything else We want to hear about the churn and the fees that they're incurring In some cases those fees may be way out of line with the actual cost or the service that they're getting What does this mean for the CFPB at this stage of the game as part of the Biden administration Are you looking at a more aggressive posture in dealing with this type of thing than what we saw for instance in the Trump administration Well look our job is to enforce the law and that's what I am going to do We want to make sure markets are competitive President Biden convened many agency heads and cabinet members And we talked about all we need to do to attack the lack of competition including in the financial sector where a handful of giants often dominate certain markets So at the end of the day we want to make sure that the more we have competition the more that prices are lower that people have more choices that we get more innovation And that's going to be top of mind for us at the CFP Is this a big conversation about inflation in disguise here Is that what we're really talking about I know the administration is found a number of ways to get to inflation It's a very narrow focused effort Is this one of them Well I see this as a long-standing problem You know when you go to the supermarket you can see when prices are going up When you buy things online some people can feel when prices are changing A lot of times in banking these fees are on the back end It's advertised as free or low fee but in reality people get penalized and many financial institutions make big money on this fee creep that we're seeing And ultimately the more we can make it clearer and competitive some of those fees might go away Some banks are already announcing they're getting rid of overdraft fees and NSF fees And I think we're going to see more of that Director you were once the agency's student loan ombudsman so you know a bit about this I wonder why does the Biden administration continue to resist calls to forgive student loan debt from the likes of senator Elizabeth Warren and other progressives Well you know that's really a decision for the education department from the CFPB They CFPB is enforcement action Have canceled debt especially when it's been illegally or legally originated We'll wait for a decision I am definitely worried about the return to repayment which is going to start in a few months We need to make sure that borrowers who have been cheated or borrowers who know their rights And I think we're all waiting for a decision on what might happen when it comes to student loan Thanks to CFPB director Rohit Chopra coming up what went wrong with the rollout of 5G I'll ask former FCC chair ajit pai coming up next You're listening.
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Biden picks Chopra, Gensler for financial oversight roles
"Button is tapping a pair of veteran regulator to oversee two key financial agencies. MPR's Barbara Sprint says their selection is a signal the incoming by administration will be tough on oversight. Biden will nominate Gerry Gambler to lead the Securities and Exchange Commission and Rohit Chopra to head the Consumer Financial Protection Bureau. Their selection is a triumph for progressives who have pushed for more aggressive oversight of the financial industry. Cancer is a top financial regulator known for taking on big banks and trading houses after the dog frank financial reforms enacted following the 2000 and eight financial crisis, Chopra is the commissioner on the Federal Trade Commission and an ally of Senator Elizabeth Warren. He previously served as assistant director at the Consumer Financial Protection Bureau. It's expected a top focus of his would be student loans. Both nominees are subject to Senate confirmation.