The Chamber of Commerce doesn't think consumers need real protection after the financial crisis

[marmar]

from the American Prospect:



Who's Leading the Fight Against Consumer Financial Regulation?
The Chamber of Commerce doesn't think consumers need real protection after the financial crisis.

Tim Fernholz | September 9, 2009 | web only


The financial crisis has taught people to be skeptical of lenders. The crash of 2008 came after borrowers, half of whom qualified for safe, prime loans, were steered instead toward sub-prime loans that lenders promised they could pay back. Mortgage lenders weren't even checking to see if people had jobs before offering loans that would bankrupt them. After considering real-estate lending alongside deceptive credit-card practices, predatory payday loans, and multiplying bank fees, it's hard to argue that consumers have been adequately protected from the financial sector.

In response, the Obama administration, along with Democrats in Congress, has proposed the creation of a Consumer Financial Protection Agency (CFPA), which would house all federal consumer financial regulation in one new office. The CFPA would make sure lenders act transparently and don't take advantage of consumers, just as the Consumer Product Safety Commission makes sure the appliances you buy aren't going to catch fire and the Food and Drug Administration ensures there is no poison in your breakfast cereal. For instance, the CFPA would require lenders to provide "plain vanilla" financial products to consumers -- loans that are certified as safe and understandable -- before laying out riskier options.

Business interests oppose the plan, mainly because it would curtail highly profitable practices, like sub-prime loans. But that's not what they say publicly. The Chamber of Commerce, the business community's umbrella group in Washington, recently organized a conference call coordinating some 200 representatives of groups who oppose the legislation. The call doesn't mention any of the serious problems that led to the financial crisis or why consumer regulation is important. Instead, it follows a "death panel" approach to political discussion: Scare the hell out of everyone.

The CFPA's regulation would primarily affect consumer lenders -- be they banks, payday lenders, check cashers, credit unions, or mortgage lenders -- not most regular businesses. But Chamber is painting the new office as an "unprecedented expansion of government intervention" that will have expensive consequences for almost everyone. Their rhetoric would recall the Chamber's opposition to the actually unprecedented government bank rescues, except the Chamber didn't oppose those. ...............(more)

The complete piece is at: http://www.prospect.org/cs/articles?article=whos_leading_the_fight_against_consumer_financial_regulation

[TheCowsCameHome]

1. Always remember: C of C = GOP

That's all you need to know.

[ccinamon]

2. As a small business owner,

I would never belong to any Chamber of Commerce...all they REALLY care about, is the money they get from the larger businesses...at this point, I consider them a fraudulent entity.

If I had the money, I would send out info on how anti-small business they really are to local small businesses.

[KoKo]

3. I know for a fact that Chamber of Commerce groups were

involved in this (at least in SC and probably elsewhere). A message went out on a registered site (for property owners) that you have to be registered to use on one of the wealthy Resort Islands near Charleston. It was real estate agents announcing the event. Caused a big mess on the site because not all were happy with political activities put out on the board which is usually for sharing info about recommendations for termite inspectors and such. A few of the people who were advocating are property owners who are probably worth millions and they were going to DC and urging others to attend.. So, there's a lot of business interest in supporting the "TeaBaggers." A relative owns property there and I've had access to the site so I know who the folks are who post and the Real Estate Agents affiliations.

BTW: I posted this on another thread earlier when folks were saying all the "TeaBaggers" are illiterate and don't know what they are doing. Then I saw your post from American Prospect. Thanks for posting. Folks should know the it's not just Freedom Works that's behind the Tea Baggers. It's Business interests even beyond the Big Pharma/Insurance. And, it's very smart people...who use others to gain their objectives. Same folks running Glenn Beck and the others who've assumed "leadership for the (supposed) "common man/woman."

[Union Yes]

4. The COC thinks we should be paid $3 a day for a 12 hour workday 6-7 days a week.

[DavidDvorkin]

5. The Invisible Hand will take care of everything

I just had an argument with an acquaintance on Facebook. He's swallowed that capitalist line and really does think that competitions operate efficiently and to everyone's benefit.

The CoC is a cynical and sinister bunch, but they get support from millions of dupes.

[Democrats_win]

6. COC: home of the Powell Manifesto--brainwashing Americans to commit economic suicide.

http://en.wikipedia.org/wiki/Powell_Manifesto

"The memo called for corporate America to become more aggressive in molding politics and law in the United States...."