Obama urges creation of agency to regulate financial industry

[bemildred]

Source: LAT

Reporting from Washington - President Obama tried to build momentum for the centerpiece of his overhaul of financial regulations -- a new agency to protect consumers -- by aiming to derail the strong opposition from business groups that threatens its passage by Congress.

In some of his sharpest comments on the issue, Obama slammed banks and the U.S. Chamber of Commerce for trying to block, or at least water down, the proposed Consumer Financial Protection Agency as it heads toward a vote in a House committee next week.

"They're doing what they always do, descending on Congress, using every bit of influence they have to maintain the status quo that has maximized their profits at the expense of American consumers, despite the fact that recently a whole bunch of those same American consumers bailed them out as a consequence of the bad decisions that they made," Obama said Friday at a White House gathering of key lawmakers, administration officials and other supporters.

The consumer agency has wide support among Democrats, including Rep. Barney Frank of Massachusetts. Frank is chairman of the House Financial Services Committee, which takes up the measure next week. Many Republicans, bank regulators and businesses oppose all or key parts of the agency. Among other things, they say the measure would bring unnecessary layers of regulation and the intrusion of government in business operations.

Read more: http://www.latimes.com/business/la-fi-obama-regulation10-2009oct10,0,2185841.story

[Cirque du So-What]

1. This cannot be!

This contradicts the ongoing conservative talking point that our President has done nothing! Conservative obstruction begins in 5...4...3...

[Democracyinkind]

2. Sounds great. The necessary first step to clean up the mess.

Also, there are some laws that should be changed regarding oversight and we should let the new agency be run by consumer advocates not insiders. Given that, this piece of news seems like the light at the end of this particular tunnel.

[Ernesto]

3. YES!!!!!!!!!!!!

[joeycola]

4. Because congress and the WH can not do its job!!

[clear eye]

5. The question is what would its powers be, and can states be tougher?

I posted about this yesterday here. I included a link to the umbrella group of over 200 nat'l & statewide organizations supporting its formation.

But as Rep. Marcy Kaptur pointed out on Bill Moyers Journal, the issue is what would its regulatory powers be. I doubt the WH's plan goes as far as what some NGO's are calling for--to supplant the regulatory powers of the Federal Reserve. Also critical is whether individual states would be allowed to impose stricter regulations w/i their borders on top of those made by the new agency. This is crucial b/c some states are already quite consumer friendly in their regulation of credit instruments and mortgages. Likely more so than any Federal agency would be.

As with the "public option" for health insurance, the devil is in the details. Let's demand a "Consumer Financial Protection Board" that is more than a fig leaf.

[Fiendish Thingy]

6. Why not reinstate Glass-Steagall and all the other regs stripped in the past 30 years?

Instead of creating another govt. agency- just have the agencies that enforced all the rules created since the Great Depression in the 30's? Can't those agencies step up and do the job? If you raise taxes on the corporations to pay for the enforcement of the regs, it might even create some jobs...

[pleah]

7. That would be a great start. Wonder why they haven't do so, yet. n/t

[Hydra]

9. I forsee that it's just window dressing

Obama has suggested the Fed oversee things...the very people who created the crisis.

Meaningful reform would hurt campaign donations.

[pleah]

10. Not encouraging at all. Doubt we will see real reform. n/t

spelling :eyes:

[pleah]

8. K&R

[HCE SuiGeneris]

11. Don't urge it. Do it.

Today.

[ThomThom]

12. This would be great.

We need to:
1) separate banks from investment houses like it use to be
2) make illegal derivatives, mortgage backed securities and insurance backed investments
3) trust bust "too big to fail" firms and if they fail let them fail
4) re-institute high tax rates on people making excessive income in a year (say 3mil)
5) audit the Federal Reserve and require full disclosure of all financial transactions
6) have a curb on unfair lending practices and eliminate zero down and variable rate mortgages, no more selling people paper they will default on when the rates go up
7) end excessive interest on credit cards and no more raising the rate on previous purchases
8) I'm sure others can add more to this list.... feel free to do so!!!

Basically go back to before all the deregulation that has opened the door to all of these practices and policies that have put our financial institution in the mess that they are in. We should bring back tariffs to protect our jobs and give tax incentives to create and bring back manufacturing jobs. About the only thing we make now is hamburgers and that ain't going to get it.

[laughingliberal]

14. #7...raising rates on previous purchases was taken care of with the credit card reform...

still need to work on forbidding excessive interest.

[benld74]

13. IN ADDITION, ROLL BACK EVERY EFFIN LAW,,

that lead up to this fiasco!!!
AND for all you fat headed GOPers, pro business, bank regulators and the like
IT WAS the NECESSARY layers of regulation and the intrusion of government in business operations THAT WOULD HAVE PREVENTED the fiasco for happening in the first place!!!