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Tuesday, June 7, 2011

Financial reform still far from a sure thing

In the midst of the Great Recession, certain investment banks and banking practices were cast as culprits of the financial meltdown; it was all the perfect fuel for legislative action and sweeping reforms in the banking industry.  But according to a story in today’s New York Times, many of those reforms are failing to gain traction, as the rulemaking phase of the process faces one delay after another.  Click here to see the story.

Implications:  While many consumers accepted personal responsibility for their share of the financial meltdown (the over-use of credit, taking equity out of their home, etc.), many consumers also felt that portions of the financial industry were at least partially culpable for many of the woes faced during the Great Recession.

If the reforms intended to remedy banking practices are now going stagnant, it could represent a strong opportunity for almost any financial institution, or any sales organization which offers financing or financial services as a part of the transaction:  Transparency.

Does your organization thoughtfully explain the pros and cons of any investment instrument or financing alternative you offer?  Do you promote that transparent communication in your marketing messages?

There is one thing will protect the consumer better than even sweeping banking reform (if/when it actually comes to pass)… and that is help in making an informed choice.  And that’s something you can offer now.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

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