States have considerable discretion in setting policy on issues ranging from education to criminal justice. Why, then, pre-empt their rights to regulate financial privacy?

Unless Congresscaps damages, many businesses may be bankrupted forminor violations of the Fair Credit Transactions Act.

As there is no cap on total recovery under FACTA, damages for a willful violation could be in the hundreds of millions.

Privatizing Fannie Mae and Freddie Mac is the best option as a matter of policy, but Congress is likely to take the path of least resistance and restore them as government-sponsored enterprises once the housing market is stable.

Activists view state predatory lending laws as a template for aggressive federal intervention. Industries are looking to the federal government to choke off state and local experimentation.