Obama Presents Bill to Create Consumer-Finance Watchdog

Washington Post ^ | 7/1/09

[FromLori]

The Obama administration sent a detailed proposal to Congress yesterday for creating an agency to oversee nearly all facets of consumer lending, but the breadth of its powers is setting the stage for a fierce clash on Capitol Hill.

The bill aims to establish a Consumer Financial Protection Agency to guard Americans from the abusive lending practices that contributed to the financial crisis, such as undocumented mortgage applications, the poor disclosure of loan terms and deceptive ads.

Administration officials proposed that the new regulator have a broad mandate to cover the spectrum of consumer financial products and to fill gaps in current regulations. The agency would have the power to probe any lender, impose penalties of up to $1 million a day in cases of wrongdoing, limit the compensation even of loan officers and mortgage brokers, and check if banks have been acting discriminatorily by forcing them to disclose the race, age and gender of their customers.

An intense lobbying effort has already begun to win over the few undecided lawmakers who will be critical in deciding which details will be included in the final bill. Industry groups say they are forming a coalition to persuade members of Congress to scale back the bill.

"I think when people read this, they will be shocked about the incredibly broad delegation of power," said Edward L. Yingling, chief executive of the American Bankers Association. "It basically can do almost anything it wants. . . . I think there will be opposition simply on the breadth of it, on the balance of power between Congress and an agency."

[FlingWingFlyer]

One more useless “green” job from the “messiah.” Paid for with “green” from the taxpayers. He’s singlehandedly knocking a hole in the unemployment rate. LOL!

[SpaceBar]

A new czar to personally inform Obysmal of his efforts to derail the economy, and what areas need more attention.

[Bhoy]

One more bureaucracy to control what is already against the law: fraud.
One more set of bureaucrats & staff with bennies and immunity and healthcare disallowed the proles.
One more bought & paid set of voters.
Soon if anybody’s working it’ll be for the gov. There will be no “private” property because nobody will be able to fill out the paperwork to keep it.

[pissant]

Lordy, another army of commie bureaucrats

[az_gila]

“...and check if banks have been acting discriminatorily by forcing them to disclose the race, age and gender of their customers...”

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Heck - I thought Congress made this the law so that they could see that quotas were being net?

[Brad from Tennessee]

The the Obama plan is to regulate each segment of the U.S. financial industry--and eventually all industry--into insolvency, bailout, restructuring and takeover. After the famous bandit Willie Sutton was captured he was asked why he robbed banks. He said: “It's where the money is.”

[ProtectOurFreedom]

How bizarre. Dems push to have lenders shovel money out the door to people who really don’t qualify for a loan. To make this happen, the lenders stop requiring verification of employment, assets, debt/income ratios and any other metric to gauge credit-worthiness.

Now Obama wants a watchdog agency to prevent undocumented loans.

His dem buddies are going to howl because this will mean the return of stricter lending practices and the poor aren’t going to get loans they can’t repay — so dems will lose votes.

[FromLori]

Business Insider ran a very good series of articles about the crappy cra.

http://www.businessinsider.com/the-cra-debate-a-users-guide-2009-6

[mosesdapoet]

Czar ! Czar ?....Has a nice commie-zar ring to it doesn’t it ? For this and other quips check out http://www.theusmat.com/

[Texas Fossil]

This should instill confidence: /sarcasm

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“Rep. Barney Frank (D-Mass.), chair of the House Financial Services Committee, said that he would take quick action and that he aims to approve the committee’s version of the bill before Congress’s summer recess begins on Aug. 3.

“The federal regulatory system has clearly failed to provide adequate protection for consumers and that failure contributed to the broader economic crisis,” he said. “That is why I have made the creation of the agency one of our highest priorities.” “

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Since when does congress let the “man who sleeps in the White House” write legislation for Congress.

Something is seriously wrong here.

[MaxMax]

I diddle Obama like this when I, er, you get it

[Vaduz]

creating an agency is what happens when one is confused.