Banks will accept new consumer agency
By: Chris Frates
Politico.com
April 17, 2010
Republican Sen. Richard Shelby recently made Democratic Sen. Chris Dodd a tantalizing offer: He would drop his opposition to an independent consumer financial protection agency as part of a renewed round of negotiations over sweeping financial reform.
It's not clear what the top Republican on the Senate Banking Committee asked his Democratic counterpart for in return for the offer, which Shelby made almost immediately after a regulatory reform bill cleared the committee last month. But Shelby’s willingness to negotiate signals that an agency that would regulate mortgages, credit cards and most loans to consumers - once viewed as a major stumbling block to the bill's final passage - is now viewed as an inevitability by Republicans and key industry lobbyists alike.
Big banks that have been vocal opponents of the agency have decided they have the legal resources to deal with a consumer agency, whether it's independent the way it was originally proposed by President Barack Obama, or as a part of the Federal Reserve, as envisioned in Dodd's bill.
Whatever its ultimate form, they expect they will still be able to influence the critical details of how it's set up. And smaller banks are expected to be exempt from many of the new agency's regulations, according to insiders.
(Original here.)
Politico.com
April 17, 2010
Republican Sen. Richard Shelby recently made Democratic Sen. Chris Dodd a tantalizing offer: He would drop his opposition to an independent consumer financial protection agency as part of a renewed round of negotiations over sweeping financial reform.
It's not clear what the top Republican on the Senate Banking Committee asked his Democratic counterpart for in return for the offer, which Shelby made almost immediately after a regulatory reform bill cleared the committee last month. But Shelby’s willingness to negotiate signals that an agency that would regulate mortgages, credit cards and most loans to consumers - once viewed as a major stumbling block to the bill's final passage - is now viewed as an inevitability by Republicans and key industry lobbyists alike.
Big banks that have been vocal opponents of the agency have decided they have the legal resources to deal with a consumer agency, whether it's independent the way it was originally proposed by President Barack Obama, or as a part of the Federal Reserve, as envisioned in Dodd's bill.
Whatever its ultimate form, they expect they will still be able to influence the critical details of how it's set up. And smaller banks are expected to be exempt from many of the new agency's regulations, according to insiders.
(Original here.)
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