Celebrities really are just like us: Even Lindsay Lohan has problems getting someone from her bank on the phone. Meanwhile, JPMorgan Chase(JPM – Get Report) CEO Jamie Dimon expressed concerns about U.S. Sen. Elizabeth Warren at a conference on Wednesday, and auto-lenders may soon find themselves under the long arm of financial regulations.
It’s a problem that is all too common in the era of automated customer service and long hold times. The problem has been particularly acute at Charlotte, N.C.-based Bank of America, which consistently underperforms in retail banking consumer satisfaction, according to data provided by J.D. Power in April.
The rest of us, perhaps, can derive some satisfaction from knowing the Mean Girlsstar faces the same problems we do. As for Bank of America, it was only one tweet, not the diary full of personal attacks blamed on Lohan’s character that was shared with her entire high school in the movie.
Shares of Bank of America closed up 28 cents to $17.58.
While we’re on the topic of getting burned, JPMorgan’s CEO had some harsh words for U.S. Sen. Elizabeth Warren of Massachusetts, a Democrat and Banking Committee member who’s been an outspoken advocate for finance reform.
“I don’t know if she fully understands the global banking system,” Dimon said at a conference on Wednesday. Dimon later said he would be happy to meet with her again and that he shares her concerns about many risk-related issues, a JPMorgan spokesperson said.
Dimon has expressed some skepticism about how increased financial regulation has played out. In his annual shareholder letter in April, he spoke about the difficulty of having to answer to numerous regulatory bodies over the same issue.
It seems that Dimon has another powerful ally in his views. During an interview withCNBC in March, Berkshire Hathaway (BRK.A) CEO Warren Buffett said Elizabeth Warren’s methods for cleaning up Wall Street may be too confrontational.
However, Warren shows no sign of slowing down. She recently penned a 13-page letter to SEC Chair Mary Jo White in which she said of White: “I am disappointed that you have not been the strong leader that many hoped for — and that you promised to be.”
Shares of JPMorgan closed up $1.09 at $68.26.
Speaking of Elizabeth Warren, the Consumer Financial Protection Bureau she helped found is taking on more responsibility. In a statement on Wednesday, the agency said it published a rule applying to larger nonbank auto finance companies. The bureau, which already supervised auto financing at the larger banks and credit unions, is extending its oversight to any company that handles 10,000 or more auto loans or leases in a year.
Such agreements “are among the most significant and complex financial transactions in a typical consumer’s life,” CFPB Director Richard Cordray said in the statement. “Today’s rule will help ensure that larger auto finance companies treat consumers fairly.”
The agency will work to ensure that auto lenders disclose financing terms clearly; provide accurate information to credit bureaus; engage in fair debt-collection tactics; and lend according to the Equal Credit Opportunity Act.
The change could have a meaningful impact on companies such as Toyota (TM) andFord (F), which operate their own lending arms.
Shares of Toyota closed up $1.92 to $134.24 while shares of Ford closed up 14 cents to $15.02.