(Source: Dealb%%kBy BEN PROTESS) – The new Consumer Financial Protection Bureau has ignited fear on Wall Street. But many banks may eventually benefit from the regulator’s careful watch, according to a new report by Moody’s Investors Service.The bureau, Moody’s said, could be the “medicine” that tames the financial industry’s risk-taking ways. Over the long haul, safer lending practices “could limit future credit and litigation costs for the firms,” said Moody’s, one of the largest credit rating agencies.

The consumer bureau, which formally opened its doors last week, can write new rules for financial firms, examine their books and issue enforcement actions. A chief component of the Dodd-Frank financial regulatory law, the agency will focus on mortgages and credit cards, among other financial products.

Source: Dealb%%kBy BEN PROTESS

July 25, 2011, 2:15 pm

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