No One Could Have Anticipated…

February 25th, 2010at 11:28am Posted by Eli

http://www.youtube.com/watch?v=iOsgqG5OOlM

Turns out Obama “supports” the Consumer Financial Protection Agency in much the same way that he “supported” the public option:

The Obama administration is no longer insisting on the creation of a stand-alone consumer protection agency as a central element of the plan to remake regulation of the financial system.

In hopes of quick congressional approval of a reform bill, White House officials are opening the door to compromise with lawmakers concerned about creating a new bureaucracy, according to congressional and some administration sources.

President Obama’s economic team is now open to housing the consumer regulator inside another agency, such as the Treasury Department, though they still prefer a stand-alone agency. In either case, they are insisting on a regulator with political autonomy and real teeth so it can effectively enforce rules designed to protect consumers of mortgages, credit cards and other financial products.

(…)

A free-standing agency had been a central part of the original blueprint released by the Obama administration, which said it is essential to have one agency with the sole mission of protecting consumers from lending abuses. In the lead-up to the financial crisis, that responsibility was spread across numerous agencies and often took a back seat to ensuring the well-being of banks. A version of the stand-alone proposal was included in a bill passed by the House in December.

(…)

In one scenario under discussion, a consumer bureau would be set up within the Treasury Department. In another, a consumer protection division would be established inside a new national agency to regulate banks.

The latter idea would upset some consumer advocates, who say they do not want the consumer regulator to answer to bank supervisors. Advocates say these supervisors have shoddy records on shielding customers from abusive financial practices.

What could possibly go wrong?

Entry Filed under: Corruption/Cronyism,Economy,Obama,Politics,Wankers


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