Consumer Watchdog has called on Senate Banking Committee Chairman Christopher Dodd to re-affirm his commitment to an independent consumer financial regulator today after the nation’s largest bank announced it would not oppose the agency.
Last week, the CEO of Bank of America told President Obama his company does not oppose creation of a Consumer Financial Protection Agency. Also last week, former Citigroup Chairman John Reed endorsed a consumer regulator in testimony before the Senate Banking panel. Dodd is widely rumored to be considering dropping the agency from financial reform legislation.
In the letter to Senator Dodd, Consumer Watchdog wrote:
“Abandoning an independent consumer financial regulator is not a small compromise, but an untenable capitulation to those in the financial industry who have no interest in meaningful reform. It would be a disappointing and embarrassing end to more than a year of this committee’s work on a financial regulatory overhaul were you to propose a bill that provides less consumer protection than even the nation’s largest bank is willing to accept.”
In the letter the group noted that an independent Consumer Financial Protection Agency, with full rulemaking, examination and enforcement authority, is critical to both address the problems that caused the last financial crisis and create a new regulatory structure to prevent crises in the future.
The letter continues: “Meaningful financial reform must make the marketplace safer for everyday Americans. The question remains: Will you side with the public, or those who stand in the way of reform?
“We urge you to put these questions to rest by publicly reaffirming your support for a strong, independent Consumer Financial Protection Agency that will create fair rules of the road for financial products and crack down on the consumer abuses that devastated American homes, savings and economic security.”
