Vote On Consumer Financial Protection Agency Delayed Until September
This week, Rep. Barney Frank (D-MA) postponed a vote on a bill creating a Consumer Financial Protection Agency (CFPA) until September when lawmakers return from recess. The delay is partly due to other more pressing issues, but mainly due to unexpected (really?) pushback from the financial industry.
Frank said, "I've been disappointed at the energy they're putting into fighting it," which sort of makes us wonder what he thought they'd do.
"Frankly, if I were the bankers, I would not invite a debate" over whether financial institutions had adequately protected consumers, Frank said. "But that's what they want, and I think that's what we will have."
As a countermeasure, today House Republicans are expected to introduce a plan that would consolidate existing agencies instead of creating a new one. We're not sure what the financial industry lobbyists have to say about that alternative, but if it turns out they support it then it's probably not going to provide very much protection to consumers.
"Vote on Consumer Agency Delayed" [Washington Post]
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Comments:
I'm going to go out on a limb here and say that any plan the financial industry is okay with is NOT in the best interest of the consumers.
Got a problem? Create a government agency. That always fixes problems!
I'm waiting for the creation of the People Czar, Obama's answer to all the public outcry over various topics.
Uh... isn't this what the Federal Trade Commission is for? Why yes it is. They have a Bureau of Consumer Protection who's website is:
[www.ftc.gov]
First thing on the page is
"Who we are
The Federal Trade Commission is the nation's consumer protection agency."
So what is this new agency going to do for us?
All companies must pay a 100% tax on all money they spend on lobbyists. That right there will bring in 10s of billions a year, or better yet, reduce the evil in DC when companies cut back on the expense.
If only...
Hopefully this will just die. We need less governmental agencies not more of them.
@3skr1mad0r: Does the FTC regulate or even have any authority over the financial industry? I didn't think so but I could be easily convinced otherwise.
@torgonius: How about a SARS Czar and he nominates Peter Sarsgard for the position? Imagine that. Peter Sarsgard, SARS Czar. Say that ten times fast.
@I Love New Jersey: Agreed, but we need fewer government agencies that have more power to protect us. Part of the problem is that we create all these agencies with only a narrow sliver of power. Companies learn to work the gaps in these agencies and do stupid things. So if this Consumer Protection Agency will eliminate or aggregate 2 or 3 agencies, I'm all for it.
@H3ion: @H3ion: According to their site, they are supposed to enforce the following acts in regards to financial:
Consumer Leasing Act
Credit Repair Organizations Act
Electronic Fund Transfer Act
Equal Credit Opportunity Act
Fair Credit Billing Act
Fair Credit Reporting Act - Home Page
Fair Debt Collection Practices Act - Home Page
Federal Deposit Insurance Corporation Improvement Act of 1991
Home Ownership and Equity Protection Act
Identity Theft and Assumption Deterrence Act
Truth in Lending Act
@lawnmowerdeth: You can't make a 10 year old a bouncer at a bar and then complain that he's not doing his job when a fight breaks out.
Problems happen when agencies aren't given enough money or power to do their jobs. Certain parties (won't name names) starve agencies, remove all their power, override their decisions, put incompetent people in charge. They people complain that they're ineffective, so you repeat the cycle until they're worthless. Then when something bad happens (like now), you complain about how ineffective the government was at doing their job and that we don't need anymore of the same crap that you created. Give agencies funding and the appropriate power and they can be suprisingly effective.
@JustinSane07: As a left-handed person, I'm offended by your comment and ashamed of Barney's handedness.
@lawnmowerdeth:
"Something must be done."
"This is something. Therefore, this is what must be done."
@roccasaurus: As a left handed person as well, I am offended by Justin's comment and ashamed of your shame at barney's handedness.
We need this eye focused on just the financial sector.
@JustinSane07: Every time I see Barney Frank I'm reminded of the underwater king guy in Star Wars Episode 1. Or Elmer Fudd. Either way its not flattering.
Don't expect any relief from this congress. Follow the money that has been put into the reelection campaigns of the congressmen/women of dissenters. Big business has congress in their pocket for reelection money....
Notice that most of congress has been in congress to long anyway. term limits probably wouldn't help as they would have to get more in a shorter time...Stamp out lobbyist
and give the congress back to the American people......
the federal trade commission does not have the authority to do much with the support of congress, iF an agency doesn't have the authority to enforce then it's just part of the bureaucratic mess in Washington, I for one have lost respect for the process of congress, to much fat(pork) and not enough lean.
It doesn't surprised me he was ill prepared for the push back, Frank is a blithering dolt, he was my congressman for a quite a while (The Dread Scorpion of the East) and the man never got anything done. Infact, he was part of the problem when the housing market collapsed. I have no idea why people keep voting for him. Maybe they feel bad for him because he's left handed? Who knows.
That said, this act is worth while but it will probably never pass or will get so distorted that it won't end up meaning a damn thing.