July 21, 2010 11:01 AM

White House: Financial Reform Law Won't Hurt Business that Play by the Rules

By
Peter Maer
Topics
Economy ,
White House

In a radio interview with CBS News, White House economic adviser Austan Goolsbee insisted the new financial regulatory reform law won't affect businesses that play by the rules.

He said, "If you take out a loan you're supposed to pay back your bills. That's different from a world where credit card companies are making $20 billion plus a year in penalty fees and turning that into a business model."

"Businesses will need to follow standard practices that are not abusive that are not deceptive but most of them were already doing that," he added.

Responding to critics who contend the law will add to the bureaucracy, Goolsbee said, "It is certainly itself far less complex than the financial exotic instruments created in this (financial) crisis."

Goolsbee describes the measure as "the toughest consumer protection law that we've ever had in this country."

Listen to the Full Interview with Goolsbee

Peter Maer is a CBS News White House correspondent. You can read more of his posts in Hotsheet here. You can also follow him on Twitter.


Add a Comment
by pragmatist1 July 21, 2010 1:16 PM EDT
Playing by whose rules Mr. President? Yours? Fannie and Freddie? So, if banks rightfully decline issuing loans to risky borrowers, I'm sure the government won't put pressure on them to take the risks anyway, much the same as the lead-up to the subprime mess. The one that the Dems, Fannie and Freddie perpetrated to pander to those not financially deserving or credit worthy.
Reply to this comment
by tsigili July 21, 2010 11:52 AM EDT
Nor will it stop all of the abuses of the consumer, either.
Reply to this comment
by Cattzen July 21, 2010 11:23 AM EDT
If the Banking Professionals would've followed historical business practices instead of seeking high profits based through unethical means then this legislation would've never had to have been enacted.
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