May 6th, 2010
02:13 PM ET
4 years ago

Wall Street reform stuck on consumer protection

Washington (CNNMoney.com) – As the Senate continues to debate the Wall Street reform over these next few weeks, there is one issue that threatens to derail final passage: Consumer protection.

Democrats and Republicans have been arguing about consumer protection for months without making any compromise. And it's the one area that, so far, neither side has shown any willingness to bend on.

While political divisions have taken a back seat in many parts of the Wall Street reform bill, they've been front and center on the issue of creating a new agency to monitor consumer protection.

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Filed under: Wall Street
soundoff (18 Responses)
  1. RAG

    Oh those silly little consumers! Imagine them expecting the governement to protect their interests over the plutocratic cabal that runs the country. Who do they think they are? Citizens?

    May 6, 2010 02:19 pm at 2:19 pm |
  2. Ferret out the BS

    So according to Senator Shelby it's better for the consumer to fail and lose everything from unscrupulus lending practices than the lenders because of regulations to protect the consumer. Is this twisted logic or what? Without a healthy and finacially robust consumer a lender will fail anyway, but not before it sucks everything from the consumer. Again the Republican leadership chooses to ignore the financial mess deregulation has created and continues to try to remove protections from lender abuse to the consumer. Way to go, we know which team you're playing for and it isn't on the side of the average wage earning American.

    May 6, 2010 02:27 pm at 2:27 pm |
  3. Larry

    More obstructionism by the Republicans who are in the pockets of the financial institutions.

    The situation with Goldman Sachs shows we need consumer protection. They are alleged to knowingly selling bad financial packages to investors, and then investing on the fact that they would fail.

    There is no way the people who were buying those bad investments could know what Goldman Sachs was doing.

    Republicans demonstrate how corrupt they are with their obstruction to any kind of reform in this country.

    Come on November!

    May 6, 2010 02:28 pm at 2:28 pm |
  4. MR.AL

    I think the lawmakers need to reform themselves and then reform Wallstreet. How can we have consumer protection when both sides can never agree and special intrest is involved.

    May 6, 2010 02:36 pm at 2:36 pm |
  5. Ken in NC

    Democrats need to understand that Wall Street Reform must not have consumer protections built in to it. If you build in consumer protections the Banking Industry would not have a means to rape consumers any more and that could cost the industry profits.

    Republicans have it right. They know that the industry must have a way to rip off consumers or they will no longer get their pay checks from Wall Street

    May 6, 2010 02:46 pm at 2:46 pm |
  6. thanks, but no thanks

    Let me guess... Republicans are against consumer protection. We will see in November who is for or against the American People...

    May 6, 2010 02:47 pm at 2:47 pm |
  7. Poser

    The Dem plan has consumer protections that help average Americans. The GOP plan:

    It moves the consumer regulator inside the Federal Deposit of Insurance Corp. and exempts most banks, credit unions, auto lenders and pay day lenders from tougher new rules. New consumer protection rules would mostly impact nonbanking mortgage originators and any financial firm that is a "repeat violator," of consumer protection laws, Shelby said.

    However, the Shelby amendment addresses Republicans' biggest criticism of the Democrats' consumer protection proposal. Republicans ensure no new consumer protection rule would trump banks' balance sheets.

    So the GOP wants to exempt most banks, credit unions, auto lenders and pay day lenders. They also want to make sure that any prevention of abusing you won't trump banks' balance sheets. Whose side are they on? Not ours.

    Vote NO to the Party of NO.

    May 6, 2010 02:59 pm at 2:59 pm |
  8. Bob in PA

    Yeah, well it needs to get stuck on something a little stickier than than. Try looking into the "Office of Financial Research". This little beauty has the ability to collect data on all financial transactions from loans, loan payments, credit cards, to ATM withdrawls for companies and individuals alike. The government does not need this information, think of the possible abuses. Why doe the government need a Credit Bureau ? This little group of Communinsts are trying to set themselves up to take over the Banking industry at will and without greater reason than Obama or Geitner says so.
    Call your Senator today and say NO NO NO!

    May 6, 2010 03:01 pm at 3:01 pm |
  9. montag

    Of course, the Republicans are against it. When have they ever done anything to protect consumers?

    Let them filibuster. Bring in the cots and make them stay. Let all Americans see the GOP for what it truly is.

    May 6, 2010 03:09 pm at 3:09 pm |
  10. NYC REPUB

    Ram that consumer agency through......if they won't vote for this then all of America should know about it..........

    May 6, 2010 03:18 pm at 3:18 pm |
  11. Dano

    If I understood the article correctly, the Democrats want protections for consumers to be part of the bill, and the Republicans want almost all financial institutions to be exempt from these protections. I think it's pretty clear who each party is representing, don't you think? And don't try to use the "less government in our lives" arguement, as it doesn't seem to apply when discussing who we can marry, who decides what's best for their own bodies, and what medical treatments or medications doctors can prescribe.

    May 6, 2010 03:26 pm at 3:26 pm |
  12. Lori in St Pete

    As usual, the dems are looking out for the people, and the rethugliban are looking out for the banksters. The dems should turn this into their election issue.

    May 6, 2010 03:34 pm at 3:34 pm |
  13. BADGER

    Why wouldn't you want consumer protection Mr. McConnell and the Republican's? Oh that means some rich corporation might lose out on a dime, or some wall street banker couldn't legally rip off the American Public. When are the People going to understand that regulation isn't a dirty word, even when the repubs what you to believe it is. Just look back to 2008 and see what happened.

    May 6, 2010 03:35 pm at 3:35 pm |
  14. one voice

    It's simple: the Democrats want to protect the consumer (you and me) while the Republicans want to let the banks continue to rape the American taxpayer. VOTE THE GOP CLOWNS OUT.

    May 6, 2010 03:36 pm at 3:36 pm |
  15. Jane (Minnesota)

    Oh why on earth would the people we consumers elect to their jobs and all that goes with it ever possibly want to protect us!!!! It's as if Washington has seceeded from the voters!

    Losers!!!!

    May 6, 2010 03:43 pm at 3:43 pm |
  16. Dennis

    Screw the consumer, how can we pay Wall Street executives the HUGE BONUSES they deserve if we give MIDDLE CLASS americans a fair shake? After 2 years of bailing out Wall Street at the expense of giving prudent savers 0% on their money we now have another LEHMAN debacle. This is getting old and I am getting tired of supporting greed and corruption. REPUBLICIANS, you? Seems not.

    May 6, 2010 03:45 pm at 3:45 pm |
  17. Marlene

    I have listened to Elizabeth Warren, Chair of the Oversight Commission, several times. She has continually emphasized that the Consumer Protection Commission is one of the two most important things about the reform bill being proposed. It makes so much sense and I can't understand why the Senate GOP leaders are against it. Someone, please someone, must be on the side on the consumer, and afford us some common sense protections against the out rageous rules that the big companies implement without any regard.

    May 6, 2010 03:46 pm at 3:46 pm |
  18. RECR

    Why the heck is consumer protection a sticky point? HELLOOOO! Isn't protecting consumers a good thing and the right thing to do? After the economic hell we have been though where consumers were the losers (as always given that Wall Street didn't suffer) you may think that the stronger a CFPA is the better is for America and both parties should be jumping to promote stronger consumer protections. But as always we see the country led by a bunch of morons.

    May 6, 2010 03:46 pm at 3:46 pm |