Obama Proposal on Consumer Finance Hits Senate Roadblock Named Richard Shelby

[babylonsister]

http://www.cqpolitics.com/wmspage.cfm?parm1=5&docID=cqmidday-000003165672

Obama Proposal on Consumer Finance Hits Senate Roadblock


The Obama administration’s efforts to establish a new agency to protect consumers’ financial interests ran into some heavy fire Tuesday from the top Republican on the Senate Banking, Housing and Urban Affairs Committee.

The administration, with strong support from many Democrats, is pushing legislation that would set up a new agency to regulate financial products sold to consumers by banks and non-banks. The proposal would consolidate most of the existing consumer protection laws under one roof, and the new agency could write rules and enforce compliance through orders, fines and penalties.

Committee Chairman Christopher J. Dodd , D-Conn., said a Consumer Financial Protection Agency “could have stopped this crisis before it started.”

But Alabama Republican Richard C. Shelby , the committee’s ranking member, sounded a skeptical note about the administration’s plan. “I do not accept the premise that the remedy is to deny consumers decision-making power altogether,” Shelby said. “I think this would be a very significant and paternalistic departure from the notions of liberty and personal responsibility that have previously guided our regulatory efforts.”

The financial services industry opposes a new consumer protection agency, arguing that it would end up limiting consumer choices and ultimately raise the cost of credit. Opposition from a powerful member like Shelby could spell trouble for the proposal in the Senate.

American Bankers Association president and CEO Edward L. Yingling said the new agency “would appear to be the most powerful agency ever created,” and added, “This proposal will chill efforts to innovate and respond to consumer demand for beneficial products and services.”

Dodd seemed nonplussed by such arguments. “Financial services companies that want to make an honest living should welcome this effort to create a level playing field,” he said.

[cayanne]

1. Sigh

This again demonstrates that the Republicans are not for the people and continues to be the party of no.