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House committee delays consumer financial protection agency legislation

By Bernard Hibbitts (editor) and University of Pittsburgh School of Law students.

[JURIST] The US House Financial Services Committee on Tuesday delayed action on legislation that would create a consumer financial protection agency, slowing progress on a key Obama administration project. The delay was granted at the behest of financial industry leaders, who on Monday sent a letter to the ranking members of the committee requesting a more measured approach to deliberations. The agency, proposed by the Obama administration last month and put forth by Representative Barney Frank (D-MA), would assume significant oversight of the financial industry from the Federal Reserve, Federal Deposit Insurance Corporation, and Comptroller of Currency. With the delay, the bill will not be the focus of House action until after the August recess. Greater protection for consumers and regulation of the financial industry has been a priority of the Obama administration in the wake of the economic crisis of the past 16 months. In March, US Treasury Secretary Timothy Geithner indicated that the Department of the Treasury would propose stronger rules in response to the current economic crisis, and called for both the Reserve and Treasury to be given broader powers. In February, Geithner had emphasized increasing restrictions on financial institutions receiving government assistance.

Full post as published by JURIST - The Paper Chase on July 22, 2009 (boomark / email).