Between blowing the moon up and receiving the Peace Prize the Prez got tough on C of Commerce

grantcart

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Fri Oct-09-09 04:28 PM
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Between blowing the moon up and receiving the Peace Prize the Prez got tough on C of Commerce

http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=200910091527dowjonesdjonline000541&title=2nd-update-obama-steps-up-push-for-consumer-financial-protection">President Obama calls out US Chamber of Commerce

The President was going for the Super Hero President trifecta today when between the other happenings he had a presser and made a strident defense of the Consumer Financial Protection Agency and strongly attacked the vested interests that were trying to undermine reform.

WASHINGTON -(Dow Jones)- Ratcheting up his drive for new financial regulations, President Barack Obama took direct aim at the industry groups that oppose his proposed Consumer Financial Protection Agency, calling their criticism "completely false."

"They're doing what they always do - descending on Congress and using every bit of influence they have to maintain a 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 bad decisions that they made," Obama said in a speech at the White House Friday. "Since they're worried they may not be able to kill this agency, they're trying their hardest to weaken it."

The consumer agency is one of the primary components of the regulatory revamp Obama wants lawmakers to pass before the end of the year. But it has come under fire from Republicans and Wall Street. The banking sector has been lobbying to water down the legislation so the agency doesn't have the ability to enforce the rules that it writes.

Obama, however, signaled that the agency must be given the teeth to be effective.

"The consumer agency we're proposing would set ground rules so that firms don't have to compete to confuse families, but to give them better choices," he said. "This will also help small-business entrepreneurs who often rely on credit cards and home-equity loans to finance their start-ups."

Obama had sharp words for his opponents, calling out the U.S. Chamber of Commerce in particular for spending "millions" on a public campaign to kill the agency.

"You might have seen some of these ads - the ones that claim local butchers and other small businesses will somehow be harmed by this agency," Obama said. " This, of course, is completely false - and we've made clear that only businesses that offer financial services would be affected by this agency."

He also shot down concerns that the agency would restrict consumer choice and innovation in the financial arena: "Nothing could be further from the truth."

The Chamber of Commerce, in a statement front-running Obama's remarks, said existing regulators should have their powers expanded to crack down on predatory practices, but repeated that it views the new agency as the wrong approach.