Consumer agency delivery pain
Rep. Barney Frank, D-Mass, Chairman of the House Financial Services Committee, submitted on Wednesday a 152 page bill in support of president Barack Obama’s proposal to create a Consumer Protection Agency.
The government’s position appears pristine clear and justified, “We need one agency for one marketplace with one mission — to protect consumers of financial products and services — and the authority to achieve that mission,” said Michael Barr, Assistant Secretary for Financial Institutions at the Treasury Department.
But, there seems to be a large opposition base, no Republicans in the House favor the passage of this bill. Rep. Cliff Stearns, R-Fla, said “They don’t know how much they are going to spend. They don’t know what resources they’re going to need. And also they are going to be taking on expertise on areas they know nothing about that the Federal Trade Commission has years on.”
Elizabeth Warren interviewed by Bloomberg
As Elizabeth Warren most eloquently states, “Current bank regulators argued that the extensive use of these complex instruments reduced systemic risk, that it was good for us, and the profitability of the banks, but it turned out that the economy, consumers and families got hurt, and not only that, it also allowed banks to go broke.”