March 2nd, 2010
03:33 PM ET
8 years ago

Senate panel mulls consumer protection deal

Washington ( - The Senate might break its impasse on financial overhaul if it moves forward with a proposal that would put a consumer financial protection watchdog inside the Federal Reserve.

But such a move could water down the impact of a such a consumer watchdog, especially when compared to the stand-alone agency first proposed by President Obama. It would also be a big reversal for the Senate Banking committee, which has accused the Fed of letting down consumers, contributing to the economic meltdown.

Housing a new consumer regulator in the Fed is not set in stone, but lawmakers on the Senate Banking panel are talking it over these next few days, say sources who are not authorized to speak about the negotiations.

Protecting consumers who buy financial products like mortgages, credit cards and even auto loans has been the big sticking point holding up Senate progress on legislation to overhaul the financial system.

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Filed under: • Senate
soundoff (18 Responses)
  1. Aspen Professor

    "Consumer financial protection watchdog inside the Federal Reserve"

    Now that makes sense! It is always great to see the Democrats come up with interesting proposals.

    Unfortunately, we rarely see the Republicans do the same. The GOP is still stagnating in the "What Was" State of Bush – Cheney Conservatism.

    The USA has had enough of right-wing extremist foolishness. A couse for them in Accounting 101 might(?) do them well. You cannot cut taxes for the wealthy, outspend the Democrats as they did for 10 LONG years, and do anything but increase the Nation's Deficit.

    March 2, 2010 03:57 pm at 3:57 pm |
  2. Andy

    Better annex more land around Washington,when Obama gets finished adding to the government rolls,we will need more office space and larger printing presses for the money.We are just going to print more right?

    March 2, 2010 03:57 pm at 3:57 pm |
  3. Randolph Carter, I'm no expert but....

    Blah blah blah! Now how about some real financial reform like re-instating Glass-Steagal for starters. Oh, that's right, the financial gurus are all ex-Wall Streeters. Oh well, I'm gonna invest in the nascent green energy and carbon credit bubble and get out in about 8 years before the whole thing collapses again. Americans sure don't learn anything from history. Have a nice day, consumerbots!

    March 2, 2010 04:01 pm at 4:01 pm |
  4. The lonely Libertarian of Liverpool NY

    Hey congress where is the "Audit the Fed" bill. Still on the back burner? How can we even think about recovery when we do not even know how much debt the taxpayer is being held accountable to?
    Pass the "audit the fed" bill today, this is where your priority should be if you actually worked for the people and not the banking industry.

    March 2, 2010 04:07 pm at 4:07 pm |
  5. Bill or Vin from Philly

    I just hope the Democrats stand tall to big buisness and not cave in like they did with health care reform, they are supose to be the party of ordinary people and not the rich.

    March 2, 2010 04:09 pm at 4:09 pm |
  6. Annie, Atlanta

    We need a stand alone agency. This is obscene. We want guys who have either come from Wall Street or hope to go there after their stint with the government to oversee the goings on there? NO. That's almost as bad as Wall Street or big business regulating themselves. Again, NO. What about Elizabeth Warren? She's brilliant.

    March 2, 2010 04:10 pm at 4:10 pm |
  7. buckwheat

    The government is the reason things are messed up now. Remember that Ronald Reagan said to run when the government comes to your door and say they are going to help you.

    March 2, 2010 04:11 pm at 4:11 pm |
  8. cspurgeon

    If they don't get a financial abuse bill through they all need to go home. Shame on them!

    March 2, 2010 04:14 pm at 4:14 pm |
  9. El Gordo

    I do not trust our financial institutions at all. This is not the free market that Conservatives describe. Most of the people in the world have no idea what hedge funds even are, much less what they do. The bizarre financial products that our prosperity depends on cannot be valued when times turn bad. We depend on an unstable global economy and long supply lines that originate from nations that hate America. The debate over whether this watchdog agency should be a part of the FDIC organization or an independent organization is not about creating governmental efficiency. It is about how effective this watchdog will be, and all of us reading this comment have absolutely no idea what the issues really are, but our happiness and prosperity may well depend on which way this is done.

    There is one thing I know for sure: a man will do anything for a hundred million dollars, and enormous sums like these are being made by men who contribute nothing to our world. They make money by bribing governments not to regulate them. They make money by manipulating markets.

    I heard a video game designer complaining about his CEO. He said, "Our CEO doesn't even play video games; he plays golf. He doesn't make a product; he makes deals."

    "Conservatism: They Don't Call It 'The Big Con' For Nothing!"

    March 2, 2010 04:17 pm at 4:17 pm |
  10. Tanbiker2

    Placing the new consumer financial protection agency inside the Federal Reserve is precisely the correct thing to do. The Fed has the expertise and the mandate to regulate the banks and will do so very effectively to the benefit of every American. Such protection is long overdue.

    March 2, 2010 04:18 pm at 4:18 pm |
  11. Louis

    By all means, good Senators, keep mulling over whether consumers should be protected during the greatest economic downturn in 70 years. What a bunch of morons.

    March 2, 2010 04:25 pm at 4:25 pm |
  12. Most Republicans - Wrong about everything, Wrong for America (and GW Bush was the worst President ever)

    It doesn't matter whether this is a stand alone agency or part of the Fed. What matters is that the people in this agency do their job correctly.

    March 2, 2010 04:33 pm at 4:33 pm |
  13. Sniffit

    NO NO NO NO NO. Stand up for what's freekin right for once Dems. Create a separate agency like it should be and STOP YOUR F-ING CAPITULATING!!!! Godd-mn p-ssies.

    March 2, 2010 04:39 pm at 4:39 pm |
  14. Mickey

    blah blah blah...the newest domestic terrorist organization: The GOP

    March 2, 2010 04:39 pm at 4:39 pm |
  15. Sniffit

    Sooooooo, the same GOPers yelling about the absolute need to dissolve the Fed are now blocking a consumer protection agency from being independent of the Fed and actually want for it to be imbedded in the Fed? Mindboggling that there are people who just refuse to admit who the GOPers are sleeping with.

    March 2, 2010 04:44 pm at 4:44 pm |
  16. Jeff Spangler, Arlington, VA

    Why do we need an agency to protect ignorant and uninformed consumers from the consequences of their own bad decisions? I agree that most of the finnacial industry is composed of shysters selling stuff to people who neither need nor can afford it, but is that problem going to be solved by an after-the-fact intervention of another burdensome and likely incompetent bureaucracy? Very doubtful.

    March 2, 2010 05:01 pm at 5:01 pm |
  17. Nosey Canadians should mind their own business

    Republicans wont like that idea.They want the companies to prey on those of us that cant figure out all the fine print.Lets face it capitalism was made to prey on the weak and poor so the rich get richer.

    March 2, 2010 05:18 pm at 5:18 pm |
  18. Bob in Pa

    You mean they haven't done enough to screw up our interest rates and forcing banks to get rid of fixed interest cards. Pass more regulations in the name of protecting us only means that the real people that keep this economy moving will get the thumb screws tightened just that much more.

    March 2, 2010 05:26 pm at 5:26 pm |