Following the course of the Obama Administration for conservatives must be like picturing running beside a brick wall. Just when they think they are going straight…
They smack into a brick wall like the one above.
President Obama wants to create a new consumer financial protection agency to protect consumers from the massive fraud and abuse that has brought our economy low.
The Obama administration intends to propose the creation of an independent Consumer Financial Protection Agency that will be able to write and enforce rules for a wide group of financial firms.
The administration plans to propose that the new agency enforce fair lending laws, and have the authority to require loan originators to retain 5 percent of credit risk.
According to a document obtained by Reuters and later confirmed by an administration official on Tuesday, the agency will “protect consumers of credit, savings, payment and other consumer financial products and services, and to regulate all providers of such products and services.”
President Barack Obama has identified consumer protection from shoddy financial products as one of his top priorities. But it had been unclear if that would mean beefing up existing agencies or creating a new one that would write regulations and gain supervisory and enforcement powers.
The administration intends to lay out on Wednesday its plan to overhaul financial regulation, which will include a regulator to monitor risk across the financial system, proposals on capital standards, and additional transparency in derivatives markets.
The idea of a consumer financial protection agency has attracted opposition from some business groups who fear that it will stifle product innovation and undermine financial firms’ primary regulators.
Consumer advocates and lawmakers from both political parties have strongly endorsed the creation of a new agency to protect consumers after a credit crisis largely fueled by loosely regulated mortgage products and servicers.
Don’t stop, Mr. President!