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Fed Chair Jerome H. Powell outlines the Federal Reserve’s response to technological advances in the global payment systems

Fed Chairman Jerome Powell2

the staff of the Ridgewood blog

Washington DC, Technological advances are driving rapid change in the global payments landscape. The Federal Reserve is studying these developments and exploring ways that it might refine its role as a core payment services provider and as the issuing authority for U.S. currency.

Continue reading Fed Chair Jerome H. Powell outlines the Federal Reserve’s response to technological advances in the global payment systems

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Rep Scott Garrett Questions Consumer Financial Protection Bureau on Auto Dealer Sub Prime Lending

scott-garrett

House lawmakers pepper Cordray over dealer reserve

Wednesday, Sep. 30, 2015, 11:59 AM UPDATED 11:28 AM

By Nick Zulovich
Editor

WASHINGTON, D.C. –

Two of U.S. House membesr who are two of staunchest defenders of dealers and how the indirect auto financing model currently operates — one that still includes dealer reserve — peppered the director of the Consumer Financial Protection Bureau who made his semiannual appearance before the Financial Services Committee on Tuesday.

Like many of his fellow lawmakers, Rep. Scott Garrett referenced a series of recent reports from American Banker recapping internal memos and other documents about the CFPB’s use of disparate impact to generate a “tipping point” enforcement action that might discontinue the practice of dealer participation altogether.

The New Jersey lawmaker then directly asked CFPB director Richard Cordray, “Are you working to eliminate dealer reserves?”

Cordray replied with, “We have been working to try to address a practice that we believe is discriminatory, discretionary markups.”

He added that the CFPB is out “not necessarily to eliminate,” dealer participation. “We had an enforcement action (Monday) in which it would limit dealer reserve, not eliminate it. And we think that might be a fair way to try to address the issue,” Cordray went on to say.

What Cordray referenced was the CFPB enforcement action against Fifth Third Bank, which included a mandate to cap dealer markup at either 1.25 percent or 1 percent depending on the length of the vehicle installment contract.

During a back-and-forth exchange between Garrett and Cordray that had each individual interrupt each other multiple times, the House lawmaker insisted he was asking these questions because “dealers are on the front lines of making these loans.”

Cordray replied with how the Dodd-Frank Act was written that created the CFPB four years ago.

“We have authority in the statute. It doesn’t exempt the auto industry. It exempts auto dealers. It doesn’t exempt auto lenders. We have a responsibility to address auto lenders. We understand we are exempted from addressing auto dealers,” Cordray said.

“Congress drew the statute. I didn’t draw it. I have to live with it. It exempts auto dealers, but gives us responsibility over auto lenders. I’m not sure that makes a lot of sense, but we’re trying our best to observe the lines that Congress drew,” he continued.

“It’s a funny provision in the statute. I’m not sure it’s very logical,” Cordray added.

Before Garrett’s time for questioning expired, Cordray also told the lawmaker that vehicle financing is “made by the auto lender. The auto lender controls the auto lending program.”

And with institutions such as Fifth Third Bank as well as American Honda Finance now restricted on how much dealer markup is allowed, Garrett also questioned whether the CFPB understands the implications on dealerships and their ability to generate revenue by these enforcement actions.

“What I would say is this,” Cordray said, “As we do our work … it does effect auto dealers. I would agree with you on that. That’s why the provision is not very logical.”

Finally, Garrett tried to get Cordray to acknowledge the CFPB’s actions are increasing the consumer costs of making a vehicle purchase based on a wide array of studies from the American Financial Services Association, the National Automobile Dealers Association and other organizations.

https://www.autoremarketing.com/subprime/house-lawmakers-pepper-cordray-over-dealer-reserve

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Former Ridgewood Water Exec Gets 3 years prison for Falsifying Reports

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Ex-top official of East Orange water agency gets 3 years in prison

Formerly the chief engineer for Ridgewood Water.

TRENTON — A former top official of the East Orange Water Commission was sentenced to three years in prison today for hiding elevated levels of an industrial solvent in drinking water pumped to more than 80,000 residents in the city and neighboring South Orange.

William Mowell, 52, of Wyckoff, pleaded guilty in July to conspiring with the agency’s former executive director, Harry Mansmann, to falsify levels of tetrachloroethene to show the water was safe to drink, the state Attorney General’s Office said.

As part of his sentence, handed down by state Superior Court Judge Carolyn Wright, Mowell will be permanently banned form public office and public employment in the state.

https://www.nj.com/news/index.ssf/2014/12/ex-top_official_of_east_orange_water_agency_gets_3_years_in_prison.html#incart_river