Richard Cordray Ohio State Treasurer stressed increased regulation at a Federal Reserve conference Wednesday, noting that uneven regulation creates a hazard for consumers.
"We have the banks, federal and state banks, that are closely regulated," he said.
However, an uneven regulatory field created opportunities for unsafe lending, Cordray explained.
"A lot of what came into this market were other entities that were able to generate capital, especially from Wall Street," he said. "We should have a level playing field…some are regulated carefully and others are not."
While some of the "dramatic jump" in foreclosures is related to the "sluggish economy" the Midwest has had, Cordray was still very critical of the loans offered to borrowers who are now struggling to pay them back.
"Many of those loans were short term homeownership, they were never meant to be long term homeownership," he said. "There has been a lot of cleaning in that area."
The Federal Reserve Bank of Cleveland Community Development Policy Summit is being held in Cleveland, Ohio. The state of Ohio has had a "struggling economy" for over a decade now, Cordray said, adding that his state has "been hit very hard" by the mortgage foreclosure crisis.
As part of the effort to protect consumers, the Ohio treasury department is now gathering information about banks' community reinvestment act record, as well as their efforts and how they are dealing with the foreclosure issue, Cordray said.
He also emphasized the need for savings-incentivizing programs, noting that the three-year savings rate in the United States is at its lowest ebb since 1932-1934, the height of the Great Depression.
Financial education can help, he said, although he added that it can at times be overvalued.
"Financial education has to be a part of the solution to these problems, although it is not a whole solution," Cordray said.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.