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June 22, 2010 | federal legislation, industry | Comments (0)From the AP:
Lawmakers on a special negotiating committee narrowing differences in the broader rewrite of financial regulation in generations agreed in principle Tuesday to create a new government agency to oversee credit products offered to consumers.
Senators on the conference committee late Tuesday accepted a host of House of Representatives amendments, all but clearing the way for creation of what will be called the Bureau of Consumer Financial Protection to be housed at the Federal Reserve and partially funded by the central bank.
The panel would address several of the contributing factors to the U.S. financial crisis, especially mortgage lending, a root cause of the crisis. Big non-bank lenders and mortgage brokers, who together exploited gaps in federal regulation or located in states with weak local regulation, will now come under the purview of the bureau. Similarly, payday lenders who have had little direct federal regulation now will be under a regulatory microscope.
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