Main Street Brigade: — Blog

CFPA in the News

on Mar3

Synopsis of recent news on the CFPA:

Washington Post, March 2, 2010
Dodd wants Democratic support for consumer-protection regulator at Fed

The chairman of the Senate banking committee is seeking Democratic support for a Republican proposal to house a new consumer-protection regulator inside the Federal Reserve, a compromise that could clear the way for bipartisan legislation on financial reform, according to sources familiar with the negotiations.

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LA Times, March 2, 2010
Dodd moves to scale back Consumer Financial Protection Agency plan

In an attempt to lure the Republican votes needed to get a sweeping overhaul through the Senate, the Banking Committee chief is circulating a plan for a less powerful Bureau of Financial Protection.

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New York Times, March 2, 2010
Dodd Proposes Giving Fed the Task of Consumer Protection

In an effort to secure Republican support for an overhaul of financial regulations, the chairman of the Senate Banking Committee on Monday proposed giving the Federal Reserve responsibility for protecting consumers from abusive and deceptive financial products.

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Business Week, March 2, 2010
Dodd, Corker Said to Near Deal on Giving Consumer Power to Fed

Senate Banking Committee Chairman Christopher Dodd and Republican Senator Bob Corker are nearing a deal to create a consumer authority at the Federal Reserve, according to two Republican Senate aides.

The plan is for a division at the central bank that would be led by an administration appointee and have the authority to write rules, said one of the aides, who declined to be identified because negotiations are private.

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Washington Post, February 19, 2010
BILL WOULD BROADEN TREASURY SECRETARY'S POWER

The chairman of the Senate banking committee is aiming to release a new wide-ranging bill next week that would overhaul financial regulation, including a provision that could for the first time give the Treasury secretary a direct role in the oversight of individual financial companies, according to aides.

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Politico, February 19, 2010
DODD AND SHELBY NEAR REG REFORM SHOWDOWN

The Senate Banking Committee will face dueling financial reform proposals when the panel finally convenes for formal consideration of the bill.

Committee Chairman Chris Dodd (D-Conn.) plans to unveil a new draft bill next week and has set the first week in March as the target date for committee review.

CNNMoney.com, February 15, 2010
COUNTDOWN TO CREDIT CARD CHANGES

A bunch of perks are coming cardholders' way.

First off, issuers will no longer be able to retroactively hike your credit-card interest rate, making it much easier for you to get out of debt.

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Wall Street Journal, February 9, 2010

PROMINENT CFPA SUPPORTERS TURN UP THE VOLUME

Several prominent policy makers rallied Tuesday to support the creation of an independent Consumer Financial Protection Agency, as anticipation mounts over the details of legislation that Senate Banking Committee Chairman Christopher Dodd (D., Conn.) is drafting to overhaul financial regulation.

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Huffington Post, February 9, 2010

DODD TO PUSH FOR INDEPENDENT CFPA

Senate Banking Committee Chairman Christopher Dodd (D-Conn.), who's shepherding financial reform legislation through the chamber, will release the latest version of his bill later this month, perhaps as early as this week.

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LA Times, February 2, 2010:
BANK OF AMERICA WILL NOT OPPOSE THE CFPA
The banking industry is adamantly opposed to the Obama administration’s proposal for a Consumer Financial Protection Agency.

But in its fight to derail the idea, the industry won’t get help from one of its biggest names: Bank of America Corp. Under new Chief Executive Brian Moynihan, who took over Jan. 1, BofA has decided that it won’t formally oppose creation of the watchdog agency, Bloomberg News reports:

Moynihan informed White House and U.S. Treasury Department officials of the company’s stance last month, bank spokesman James Mahoney said in an interview. While not endorsing the agency, the bank agrees with the “policy direction,” Mahoney said.

“We’ve made it clear to various organizations of which we are part that we aren’t lobbying against the agency,” Mahoney said. The bank also isn’t promoting the concept, leaving the decision to Congress and U.S. agencies, he said.

Moynihan, 50, has been trying to repair the megabank’s image in Washington after the stormy tenure of previous CEO Ken Lewis.

Washington Post, January 31, 2010
THE CFPA: HOW A CRUSADE TO PROTECT CONSUMERS LOST ITS STEAM

At a time when the country is deeply divided over the proper role of government, what is Capitol Hill's appetite for a new, independent agency with broad power to police the financial industry and protect consumers from the risky lending practices that contributed so much to the financial crash of 2008?

Not as hearty as the Obama administration had hoped last year when it turned a Harvard Law professor's crusade for a Consumer Financial Protection Agency into a major element of its regulatory reform initiative.

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New York Times, Jan 20, 2010
OBAMA PRESSING FOR PROTECTIONS AGAINST LENDERS

President Obama on Tuesday stepped into the middle of a fierce lobbying battle by reinforcing his support for an independent agency to protect consumers against lending abuses that contributed to the financial crisis. The president’s move also signaled a tougher line and a more direct role as Congress weighs an overhaul of banking regulation.
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Reuter's, January 18, 2010
WATCHDOG'S FATE IN SENATE KEY TO FINANCIAL REFORM

The tag on U.S. financial regulation reform may as well say "Made on Wall Street" if bank lobbyists manage to gut the Obama administration's proposed consumer watchdog agency, said Elizabeth Warren on Monday.

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The Wall Street Journal, Jan 15, 2010
CONSUMER PROTECTION AGENCY IN DOUBT

Senate Banking Committee Chairman Christopher Dodd is considering scrapping the idea of creating a Consumer Financial Protection Agency, people familiar with the matter said, an initiative at the heart of the White House's proposal to revamp financial-sector regulations.

The Connecticut Democrat, who announced this month that he wouldn't run for re-election this year, has discussed the possibility of abandoning the push for a new agency during negotiations with key Senate Republicans as a way to secure a bipartisan deal on the legislation, these people said.

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