White House, Barney Frank, U.S. Chamber Weigh In on Consumer Agency
A plot under serious consideration by Senate Banking Committee Chairman Christopher Dodd (D., Conn.), to potentially make a new consumer protection division within the Reserves Department as a replacement for of establishing a new entity as originally designed by the White House, triggered a variety of reactions on Thursday. The agency envisioned by the White House was called the Consumer Financial Protection Agency, or CFPA.
White House spokeswoman Jennifer Psaki said the administration?s top priorities ?are ensuring the bill includes independent appointment, an independent budget, and an independent ability to set and enforce apparent rules of the road to protect American families.? What she didn?t say, though, is that the agency must be a standalone entity, showing how the White House and Mr. Dodd may be converging in this area.
House Financial Services Committee Chairman Barney Frank (D., Mass.) said lawmakers? experience with the recent credit card legislation, when banks sought to impose higher fees yet to be of the law going into effect, highlights the need for a CFPA.
?It showed why you need the agency. Obviously when the Senate acts we?ll see what they?ve got but I?m not ready to start giving things away now,? Mr. Frank said following a hearing on Capitol Hill.
The U.S. Chamber of Commerce, which has aggressively fought the creation of the CFPA, place out a statement saying housing CFPA within Reserves could still pose major problems for businesses.
?While we appreciate the administration?s willingness to consider alternatives, suggestions that the proposed CFPA could be housed within the Reserves Department is merely a victory in form, not in substance,? said Ryan McKee, senior director of the Chamber?s Center for Capital Markets Competitiveness. ?Make no mistake about it, this new proposal is nothing more than a wolf in sheep?s clothing.?