House votes against effort to kill consumer financial protection agency

December 11, 2009 by · Leave a Comment
Filed under: Legal News 

Surprising that after the $38.7 billion dollars in overdraft fees and other programs to generate revenues for the banks other than their normal services such as lending and wealth management.

The industry did not self-regulate and the regulators did not see this practices as a problem so we need to have someone out their that is looking at these “innovations” and see if they are actually beneficial and honest or are they created to be predatory with no use to the public except as a extractive force to generate profits.  Banks should really go back to the history books and read about what banks public utility is and go back to those prudent practices which are still highly profitable.

House lawmakers on Friday narrowly defeated an effort to destroy a proposed Consumer Financial Protection Agency and replace it with a weaker council. The council would have kept existing bank regulators in place but coordinated between them to write consumer protection and safety and soundness rules.

The measure to create a council was introduced by Rep. Walt Minnick, D-Idaho. It would have also give the council the authority to write rules for bank capital, but it would keep power over consumer protection at the Federal Reserve and other bank regulators, who have been charged with failing to identify problem mortgages in the build up to the financial crisis. The proposed consumer agency will regulate mortgage and credit card products for consumers. The vote was 208-223.

Source:  Market Watch

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