June 16th, 2009
11:20 AM ET
6 years ago

Obama wants shield for consumers

President Obama on Wednesday will call for the creation of a new financial watchdog agency.
President Obama on Wednesday will call for the creation of a new financial watchdog agency.

WASHINGTON (CNNMoney.com) – When President Obama takes the podium on Wednesday to talk about his proposals for avoiding the next financial crisis, he is expected to unveil one idea that speaks directly to consumers and their pocketbooks.

Obama will call for the creation of a new financial watchdog agency. Its mission will be to protect consumers from deceptive or dangerous mortgages, credit cards and other financial products.

Proponents have dubbed it a "financial products safety commission" akin to the federal agency that oversees safety of toys and other products. Obama himself broached the subject on Jay Leno's "The Tonight Show" in March.

"When you buy a toaster, if it explodes in your face, there's a law that says, 'Your toasters need to be safe,'" Obama said. "When you get a credit card or you get a mortgage, there's no law on the books that says, 'If that explodes in your face, financially, somehow you're going to be protected.'"

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Filed under: President Obama
soundoff (67 Responses)
  1. Dale

    You poor fools...... Nothing is free, "We" the American middle class will pay dearly for this man and this congress decisions. If you people could only open your minds and think for yourself.

    Get ready....... Hyper inflation and taxes are coming soon and then I'll read what you people are posting when all you can do is buy groceries.

    This is a very dangerous game we are playing. Are you sure we all want to be like California?

    June 16, 2009 12:08 pm at 12:08 pm |
  2. southerncousin

    It is indeed amazing, but more a show of the dope smokin' liberal thought process that only 9 of the 75 response to the article about the Letterman apology did not viciously attack Sarah Palin. Absolutely amazing the mean attitudes these supporters of Obama have. I do believe that shows more about why this country has deteriorated than anything. Liberals are not decent people, they are animals and thugs.

    June 16, 2009 12:08 pm at 12:08 pm |
  3. worriedmom

    Is this gonna require another CZAR? Is Obama secretly putting together his band of army against the U.S. Citizen. Should look at the Drudge Report, ABC gonna do the news inside the White House. Talk about takeover. Should not be using taxpayers money to promote his health ideas!

    June 16, 2009 12:10 pm at 12:10 pm |
  4. No More Incumbents

    Now we know what his jobs plan is. More and more government.

    June 16, 2009 12:11 pm at 12:11 pm |
  5. Fla.

    Proper oversight and working for the American people–what a welcomed & refreshing change. Thank you, Mr. President.

    June 16, 2009 12:14 pm at 12:14 pm |
  6. Brian

    Thanks for protecting me Obama. I'm too stupid to handle my own financial products. Why read the fine print when I can just sign?

    June 16, 2009 12:14 pm at 12:14 pm |
  7. Dutch/Bad Newz, VA

    Everyone crying too much government must want the country to go down the drain. The problem we had for the last 8 years was little to no government and alot of deregulation. If governmnet were involved, we may have been able to prevent the sub-prime mortgage meltdown, which is the main catalyst of our crumbling economy. So shut up and get used to it!

    June 16, 2009 12:15 pm at 12:15 pm |
  8. 25 year old independent

    Are you people who are against this crazy, this is suppose to help people. Oh and for the poeple that are saying this is going to expand government, stop acting like the governement wasn't big before. At least now it's big and traspartent instead of big and nobody knows it actually exists. Get our of yourselves and stop acting like Obama is try to distroy the world!!! No president even Bush 43, and thats hard to say, is going to do anything to intentionally screw the American people over.

    June 16, 2009 12:16 pm at 12:16 pm |
  9. RealityKing

    America hears lots of bueatiful words from Obama.., but very little action.

    June 16, 2009 12:17 pm at 12:17 pm |
  10. Bob in Pa

    You know, when you by a baloon mortgage, it says the amount of the payments and when they will increase. We don't need another bunch of bureaucrats to tell us it's a bad idea. If you can't afford the baloon payments in your current budget, you should stay away.

    June 16, 2009 12:17 pm at 12:17 pm |
  11. Bob in Pa

    The shield we really need is a shield from excessive taxation in the name of fairness.

    June 16, 2009 12:18 pm at 12:18 pm |
  12. felicia

    You people are complaining about inflation, i can tell that;s the right. Because to my understanding bills were always high, it's always been a challenge to buy food, clothing , or shelter. So i'm open to new ideas. It's only the ones who are complaining that doesn't want to share the wealth.

    June 16, 2009 12:19 pm at 12:19 pm |
  13. dontreadonme

    Obama is correct, there needs to be some guidelines with the credit card companies and predatory lenders. To stop this from happening again the best start would be to fire Barney Franks and his pal Chris Dodd from there Committee positions. The Government should not have been pushing lenders to make these subprime loans in the first place.

    June 16, 2009 12:19 pm at 12:19 pm |
  14. John

    When we have a President (George W. Bush) who misleads by creating a false intelligence report that Iraq has WMDs and puts the Country to War....... ARE WE PROTECTED??? ARE WE SAFE ????

    June 16, 2009 12:19 pm at 12:19 pm |
  15. Karen

    Good grief how many czars and watchdogs is this president going to appoint?? He fired Inspector General Gerald Walpin because he caught one of Obama's friends and supporters doing the wrong thing. The firing was illegal because of a bill Obama sponsored in congress stating 30 days notice and cause for firing. Why in the world would we want a president who is interested only in "yes" men around him. Too much change at too fast a speed scares me to death!

    June 16, 2009 12:19 pm at 12:19 pm |
  16. demwit

    We use to call it common sense. But apparently that too has been progressively dumbed down by our government edumacation system.

    June 16, 2009 12:20 pm at 12:20 pm |
  17. Expat American

    I don't know if this is a good idea quite yet. I believe in personal accountability and maybe even some personal common sense. Bad financial decisions should not be forgiven so easily; nor should those who live within their means be penalized. If you can't afford it, don't buy it! Why do credit card companies hold these open recruitment fairs at college campuses? College students don't have that kind of money to pay them back....(?)

    It's like those people who sue McDonald's because they spilled hot coffee on their lap.....make sure the lid's on right next time....and make sure of it yourself.

    June 16, 2009 12:22 pm at 12:22 pm |
  18. donttreadonme

    The best advice is to not spend more then you have. If you can’t pay it off by the end of the month then don’t buy it. Credit cards and high interest loans rob people of their wealth.

    You need to ask yourself, do I really have to have it now?

    June 16, 2009 12:22 pm at 12:22 pm |
  19. Fordy in Jamaica

    You know what amazes me? It is not that Obama is trying to prevent a hypothetical situation from becomming reality. He is actually trying to prevent something that has happenned from happening again. People!! The USA was brought to its knees by a lack of regulation and the fact that some co-operations got so big that allowing them to fail would have severe implications on the rest of the economy. That is what the President is trying to change. There should be no corporation too big to fail. What is needed is a regulated economy where businesses that make bad decisions can be allowed to go bankrupt without it having a ripple effect of decimating the entire economy. The president is doing the right things.

    June 16, 2009 12:23 pm at 12:23 pm |
  20. republicans hate america

    only right wingers will be against this proposal just like they are against welfare even though they are the most to be likely on it.

    June 16, 2009 12:26 pm at 12:26 pm |
  21. Abby

    If we were so good at self-regulating , we wouldn’t be in the mess we have been when the boom busted – so please don’t give me the ‘this is too much government’ stuff that you predictable people are about to write. We are in a bind created by not enough regulation and irresponsible banks and buyers. This is a good thing. Good work, Mr. President. Thank you.

    June 16, 2009 12:26 pm at 12:26 pm |
  22. Greed is Good

    another watchdog agency?? Whatever do we need that for? Allowing the foxes to guard the henhouse has worked so well for us up until now.

    June 16, 2009 12:28 pm at 12:28 pm |
  23. The black spider

    You complain about overspending but you want change
    You complain about socialism or government intervention but all major companies are brook and no one is spending making people loose their jobs and savings.
    You complain about paying too much at the pump for gas but you are against any reform in energy because it will cost more.
    You agree the insurance companies are crooks and are taking advantage of American people but you are against spending money in fixing it.
    You agree in wasting billions in Irak but you are against spending to fix healthcare for the americans.
    Every reform has a price tag. There is only onquestion here: WHAT DO YOU REALLY WANT. Refuse to spend the money and stay in the statut quo or spend the money and have a result.
    I am sick and tired fr tis whinners and nothing get done.

    June 16, 2009 12:28 pm at 12:28 pm |
  24. SLM

    Obama picks up where your mommy and daddy left off. No need to grow up and be responsible, the government will take care of you.

    June 16, 2009 12:29 pm at 12:29 pm |
  25. skyhawkdriver

    Before you know it we are going to have to raise our hands to go to the bathroom..I certainly realize why he needs a 747 to get anywhere..it's the only plane his ego will fit in to..is it really necessary tha t we have to see the obumbler on tv every day talking about throwing money at some other program or car maker or country..the president has a bad case of diahrrea of the mouth..PLEASE give us a break..we are broke,unemployed,and fed up..we don't need you depressing us any more..maybe you could get good old joe biden to come out and tell us some bad jokes..of course just seeing joe makes me laugh

    June 16, 2009 12:30 pm at 12:30 pm |
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