The threat, Williams said, stems from a resource imbalance between banks and regulators. The government can't afford bank-level salaries or complex risk management systems, leaving a large "sophistication gap" between them and the banks, he said. Before the 2008 financial crisis, banks took advantage of this disparity by taking on risks that their regulators didn't fully understand.CFPB officials say they strive to help banks comply with the agency's rules by publishing guidance and manuals used by its field examiners, and through webinars and other outreach.
Banks Say New Agency's Oversight Is Slow, Costly
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