Out on a limb
June 6, 2010 | federal legislation | Comments (0)This AP writer prognosticates:
CONSUMER PROTECTION
House bill: A new agency would write rules to protect consumers from unfair credit cards, mortgages, payday loans and other products.
Senate bill: Would create a consumer financial bureau within the Federal Reserve. Its rules could be blocked by other regulators.
Impact: Some regulators were lax in their oversight before the crisis. Under the Senate plan, the regulators could overrule proposals intended to help consumers. Consumer advocates say the independent agency the House bill proposes would be tougher.
Prognosis: Uncertain. Rep. Barney Frank, the Massachusetts Democrat who will run the negotiations, favors an independent agency. So does the Obama administration. But industry opposition to the agency held up the Senate bill, forcing the compromise that would let other regulators overturn its rules.
That’s really sticking your neck out.
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