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Obama Defends New Consumer Agency
US President Barack Obama has launched a staunch defence of his proposed new agency to protect the interests of the American consumer.
Mr Obama said it was more important than ever to have a new consumer watchdog, and accused vested interests of trying to scupper reform.
He accused the US Chamber of Commerce of trying to "kill" plans for the Consumer Financial Protection Agency.
The president was talking on the day he received the Nobel Peace Prize.
More protection
His administration has proposed a number of regulatory reforms designed to prevent another financial crisis.
One of them is to create a new consumer agency to regulate products such as credit cards and mortgages.
It would also force banks to offer low-risk, standard versions of these products.
"Predictably, a lot of banks and big financial firms don't like the idea of a consumer agency very much," Mr Obama said.
"They're doing what they always do - using every bit of influence to maintain the status quo that has maximised their profits at the expense of American consumers.
"In fact, the US Chamber of Commerce is spending millions on an ad campaign to kill it."
But the president said he would not back down from his plans for reform. He said the new agency was needed to protect US consumers from "ridiculously confusing contracts" used by financial institutions.
"We have already seen and lived the consequences of what happens when there is too little accountability on Wall Street and too little protection on Main Street, and I will not allow this country to go back there," he said.
The White House also wants to give the central bank, the Federal Reserve, new powers over big financial firms, including the ability to seize banks whose collapse could threaten the economy.
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6 Comments so far
Show AllAnyone for a pool on when he'll cave?
He wouldn't cave, just appoint someone like Larry Summers to run it . . .
I wonder if the new agency will protect us like Obama's war agenda is protecting non-combatants from covert air strikes?
"Predictably, a lot of banks and big financial firms don't like the idea of a consumer agency very much," Mr Obama said.
Au contraire, the "lot of banks and big financial firms" like that idea very much. What they don't like is the real solution - returning Glass-Steagall and the New deal. A new agency won't do anything absent a law that clearly states what is legal and what not, this is what Glass-Steagall used to do. We already have FTC and SEC, they didn't do anything to stop the crisis.
THE ROLE OF AGENCIES IS TO ENFORCE THE LAW, BUT THE PROPER LAW IS MISSING, IT WAS REPEALED.
The Obama quote is very telling - he starts the usual for his administration deceitful game of proposing non-solutions while his Republican coworkers nosily and pretentiously "fight" with them. As with single-payer, the right solution is not even on the table. The media makes a big circus out of the "fight", tough looking partisan clowns smash cakes on each others faces... and the nonsense becomes law. Complete corruption of banks, media, political parties and government makes this possible.
It goes deeper than that, most of the bills in congress follow the now traditional path of creating new agencies or branches with broad regulative authority. The days of clear and well defined law are gone. Congress have abandoned their legislative power, instead of passing clear regulations, they sell regulatory powers to private institutions (the Fed) and the executive branch (a billion agencies). These institutions are allowed to regulate as they see fit, this is against the spirit of the Constitution as it mixes legislative and executive powers. Greased with ill corrupt bank money, and cheered by the corrupt media, the scam accelerates with alarming pace. Only massive public denunciation of corruption and the two parties can bring hope for change. We have to put everything else aside, especially such highly divisive issues like race, gays, abortions, guns, CO2, etc. It has to be very clearly understood, while there is corruption the barrage of fake legislation which creates more problems than it solves will continue.
WHILE THERE IS CORRUPTION EVERY ISSUE WILL BE USED AGAINST THE INTEREST OF THE POPULACE AT LARGE.
A good post pointing out the real solution to citizens problems......
"A new agency won't do anything absent a law that clearly states what is legal and what not, this is what Glass-Steagall used to do. We already have FTC and SEC, they didn't do anything to stop the crisis.
THE ROLE OF AGENCIES IS TO ENFORCE THE LAW, BUT THE PROPER LAW IS MISSING, IT WAS"
We need laws reinstated and regulatons reinstated and enforced, not more agencies and speeches.
your right right arktig. try calling barney franks office
about steagall glass and they'll tell you to go fuck yourself
in not so many words. i know i tried it.i,m an ex banker
and i would love the opportunity to work in this new agency.
unfortunately when you try to do your job you will be
blocked from doing so just like regulators at the sec and
fed found out. it could even get you fired if you pushed
too hard. we'll see about this and the banks will really be throwing around the money in dc to block this one.