For years, the National Council of La Raza (NCLR) and other civil rights groups have called for a major overhaul of the banking system. Unfortunately, it took an economic meltdown to push regulatory reform toward the top of the legislative docket. While the financial catastrophe destabilized all American households, it hit Latino families particularly hard as they were overwhelmingly targeted by deceptive lenders in the car, credit card, and home markets. The subprime disaster continues for our community, as the rate of foreclosures caused by the subprime boom is predicted to peak in 2010. While we are encouraged by the creation of a Consumer Financial Protection Agency (CFPA) and other legislative activity that aims to preserve household assets, we move ahead with cautious optimism. We hope that strong legislation survives the industry lobbyist gauntlet and that for the first time we can rely on an agency devoted entirely to protecting consumers.
(Live chat on Banking Reform with Janis Bowdler, Deputy Director, Wealth-Building Policy Project, NCLR)
