Consumer Law

Times Reports that Senate Financial Regulation Talks Break Down Over Consumer Financial Protection Agency

By Jeff Sovern

by Jeff Sovern

Here.  The article reports that Democrats will proceed on their own with the proposal.  The ranking Republican on the Committee, Richard Shelby, explained his position:

?I fully support enhancing both consumer protection and safety and soundness regulation,? Mr. Shelby said. ?I will not support a bill that enhances one at the expense of the other, however. In order to strike the appropriate balance they must be integrated with each other, not separated from each other.?

And Senator Dodd's bargaining stance was reported as follows:

Several people involved in the Dodd-Shelby negotiations, who spoke on the condition of anonymity out of deference to Mr. Dodd, said the chairman had agreed in principle to concede a new agency in favor of a new consumer protection unit within an existing regulatory body. But these people said Mr. Dodd and Mr. Shelby could not agree on the degree of independence of that unit.

Senator Shelby has been the subject of withering criticism lately on an unrelated issue: his placing of a hold on all of President Obama's pending nominations.  For example, Sandy Levinson has referred to him as an "extortionate thug" on the Balkinization Blog, while Times columnist Gail Collins ridiculed his hold as "a dramatic gesture, one Shelby must have felt was so important that he took time out from his normal duties blocking all progress on creating a consumer protection agency for financial products."

Full post as published by CL&P Blog on February 06, 2010 (boomark / email).