Elizabeth Warren on why we need a consumer agency to protect borrowers

April 29, 2010 | By | 1 Reply More

Federal TARP watchdog Elizabeth Warren is warning that the Republican proposal for a “consumer protection agency” is anti-family.

“I’m tired of hearing politicians claim to support families and, at the same time, vote with the big banks on the most important financial reform package in generations. I’m deep-down tired of it.”

The current Senate bill, sponsored by Democrat Christopher Dodd, which would house the new consumer agency within the Federal Reserve,

adheres to Warren’s four tests: a chief appointed by the president, an independent source of funding, the authority to write consumer rules and the ability to enforce them against unscrupulous lenders. The unit, thus, focuses squarely on consumers. Ensuring banks’ profitability is left to banking regulators. The Republicans’ counter-proposal, released this week, fails all four of Warren’s tests.

Warren describes the Republican proposal as follows: “”The whole idea of the substitute is to take a bunch of regulators that already failed and throw them in a committee together.”

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Category: Communication, Consumer Protection, Current Events, Politics, Uncategorized

About the Author ()

Erich Vieth is an attorney focusing on consumer law litigation and appellate practice. He is also a working musician and a writer, having founded Dangerous Intersection in 2006. Erich lives in the Shaw Neighborhood of St. Louis, Missouri, where he lives half-time with his two extraordinary daughters.

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  1. Erich Vieth says:

    "Despite the outpouring of support for bailout watchdog Elizabeth Warren's candidacy to lead a new consumer protection agency, one prominent Democrat continues to publicly stand in her way: Senate Banking Committee Chairman Christopher Dodd."

    http://www.huffingtonpost.com/2010/08/12/chris-do

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