Federal rule would harm consumers, conflict with Trump agenda, critics say

A forthcoming federal rule on open banking may allow banks to charge new fees for access to consumer data, a move critics say would harm consumers and runs counter to other parts of President Donald Trump’s agenda.

What is open banking?

Open banking allows consumers to authorize banks and other financial institutions to securely share their financial data electronically with third-party providers.

Why this rule now?

The White House was reviewing the anticipated rule from the Consumer Financial Protection Bureau as of last week, according to reporting by Bloomberg Law. The rule would help shape the federal framework for open banking in the U.S., building on a broad provision contained within the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.

Dodd-Frank was passed to enhance transparency and accountability and strengthen consumer protections in the financial industry ...