Customer benefits may not be so good for shareholders

The regulator must understand every action it takes has consequences. If a lender lets a borrower off a few payments, or changes the terms of the loan to one that makes it more risky for the lender, that is all fine and dandy for the borrower.

But isn’t it ruining shareholder value, a group that is also a customer via their pension plans and insurance funds?

If you rejig a market to be nice to one group of customers, you are, by definition, being nasty to another group.