Creditnet News Story
Dodd unveils new consumer protection bill
Thursday, March 18, 2010
By Linda McCarthy
President Barack Obama said he would oppose attempts to undermine the authority of a federal consumer protection agency.
A new version of legislation aimed at protecting consumers was unveiled by Connecticut Democratic Senator Chris Dodd, the head of the Senate Banking Committee.
Through the legislation, a new consumer financial protection agency would be created in the Federal Reserve System and would watch over financial products, including credit card offers. Originally there was a call to create a free-standing agency in order to fill this role, which could have usurped some of the powers currently held by the Fed and other financial regulatory branches of the government.
President Barack Obama said he would work with members of the Senate as the bill progresses through the chamber.
"American families deserve a strong, independent consumer financial protection agency that is accountable for setting and enforcing clear rules across the financial marketplace," Obama said, adding that he would "not accept attempts to undermine the independence" of the new agency.
The American Bankers Association, a lobbying group for the industry, said it opposes Dodd's new plan. Edward Yingling, president of the ABA, said the legislation would put traditional banks at risk while giving "non-banks" further advantages.
