Offering complex loans is not done. Why? According to Ben Bernanke, chairman of the United States Federal Reserve, some banks deliberately made their credit products convoluted to increase profits.

Bernanke says that banks should strive towards the highest levels of consumer protection. However, innovation in the areas of consumer choice and access to credit continues to be important and shouldn’t be completely ignored. This because of the benefits innovative ideas can bring.

According to Bernanke, close regulation, including a possible prohibition of certain business practices, is the only way to offer consumers the protection they need.

Your opinion?
What do you think? Have complex loans disturbed the communication between banks and consumers, and thereby contributed to the credit crunch? Should banks simplify their products? Is this perhaps the first step towards a crisis free world?