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Stop Blaming Consumers for the Financial Crisis - Bank sponsored European Credit Research Institute organises Conference to blame Consumers for the Crisis
The Brussels based ECRI which in a strange amalgamation with CEPS and unclear and intransparent dependancy from the banking industry uses its close relations to the EU-Commission to misuse the need for financial education to white wash the banking industry from its failures in the financial crisis.

ECRC in its different declarations has insisted that consumer have been the victims of irresponsible bank behaviour when first usurious credit and predatory lending practices exploited the weakness of borrowers all over the world, then sold these junk securities to public banks and other consumers and finally when the system broke down made consumers pay for it through their taxes and through money which was needed for social purposes instead of covering the losses of speculation.

Now it seems that consumers have been too stupid for the sophisticated systems of the banking industry. A number of penal procedures against banks have already shown that criminal behaviour untamed through a constant deregulation process especially at EU level would have needed state activity. It is hypocrite to blame the victims for having been frauded instead of those who frauded.

If financial education makes sense then consumer have to learn to influence banks, name, blame and shame them for their irresponsible behaviour and exercise pressure on the state, government and parliaments to adapt rules which make the financial system responsible again.

We already have this strange amalgamation in the public hearing on "responsible lending and responsible borrowing".

Now ECRI explains it as follows starting by putting consumers and banks at the same level of irresponsibility in the title of the seminar. When looking at the contents, all responsibility nevertheless remains with the borrower. Here is the invitation:


"On October 14, ECRI will host a conference on the topic of financial education and responsible lending.

Two years into the discussion of the causes of the financial crisis, it is evident that the lack of financial education on the one hand in combination with irresponsible lending practices on the other bear a fair share of the responsibility for stirring up the turmoil. Dealing with only one but not the other would thus neither be just nor justifiable on the way to fixing what is broken and preventing the crisis from erupting again. Both are crucial for efficient market outcomes and need to be addressed jointly. Even the best lending practices will be ineffective if consumers are not capable to take of making informed borrowing decisions, in the same way that even the best-informed clients will not get far if lenders apply unfair business practices.

With these axioms in mind, the European institutions have taken several recent actions to correct the existing deficiencies: amongst others, the Parliament has investigated financial education issues and adopted a report, the Commission has created an Expert Group on the same topic and a public hearing on responsible lending is scheduled for the beginning of September to evaluate the potential need for further regulatory action.

In the wake of these developments as well as in the context of a new European Parliament and a newly appointed Commission, stakeholders are invited to participate in this ECRI conference and to discuss with the assembled speakers the lessons learned, the future challenges faced and possible actions to be taken in the field of responsible lending and borrowing.

Where do the responsibilities lie? Is regulatory action feasible and necessary? What is the role of the industry in financial education? How effective are educational practices? Just how much and what information do consumers need? These and other questions will be addressed on 14 October 2009, at a half-day conference and co-sponsored by Intrum Justitia."

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CRISIS, NEVER AGAIN!  FINANCIAL EDUCATION AND RESPONSIBLE LENDING ON THE EUROPEAN AGENDA

ECRI Conference:  Wednesday, 14th October 2009, CEPS

ID: 44096
Author(s): iff
Publication date: 19/08/09
   
URL(s):

ECRC section on financial education
 

Created: 19/08/09. Last changed: 19/08/09.
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