4
Mar

Senate Bails on Proposed Consumer Financial Protection Agency

Posted by Henry Davis

Financial blogger Alain Sherter at Bnet.com offers a biting commentary on Senate lawmaker’s decision to reject President Obama’s proposal to set up a separate agency to regulate non-banking institutions that provide such things as mortgages, payday loans, and other financial products.

Banks win, consumers lose. I wish I could cushion the blow, but scuttling the formation of an independent agency to protect people against unfair and deceptive financial products (pay-option ARMS, anyone?) counts as a major victory for the industry — and a bitter defeat for just about everyone else.

Many commentators see this as a win for banks and other lenders, and a loss for consumers. While the Senate continues to work on alternatives, it looks like the status quo will be protected.

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One Response to “Senate Bails on Proposed Consumer Financial Protection Agency”


Zhanelle Chua March 4, 2010

I really think it’s kinda sad that people in high power do not think about how would consumers react and how would consumer will live their lives with this. I am also sad that Obama’s proposal is rejected because the way I see it, he wants change and he wants to change everyone’s lives, too bad he wasn’t able to. It should be a good thing that he is proposing this, but it’s bad that those people in high power just don’t have any sympathies at all.



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