Dodd’s tough choices
January 7, 2010 | federal legislation, industry | Comments (0)The Wall Street Journal discusses the possible fate of the proposed Consumer Financial Protection Agency:
Both Dodd and House Financial Services Committee Chairman Barney Frank (D., Mass.) have proposed creating a new consumer financial protection agency that has met with fierce opposition from Republicans and the business community. The proposed consumer agency is one reason no Republicans voted for the financial overhaul bill in the House.
A less powerful consumer protection agency could pass muster with Republicans, according to some industry observers, particularly if it left enforcement authority with current regulators.
“Rule writing, supervision, and enforcement–those are modules that you can kind of move around,” said David Brown a financial services attorney at Alston & Bird.
“If people are willing to compromise, and that’s always a question, there is a way of playing with those modules,” Brown said.
The U.S. Chamber of Commerce and the Financial Services Roundtable have launched aggressive lobbying campaigns against the proposed new consumer agency.
Not to mention the payday lending industry.
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