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.