Senate Banking Committee Chairman Christopher Dodd, D-Connecticut, said today the two parties are still divided on the key financial oversight reform issue of a consumer watchdog agency to oversee credit cards, mortgages and other crucial financial products.
But a bipartisan deal was possible in coming days, an optimistc Dodd said in an interview with cnbc.com.
Dodd yesterday issued a strong statement backing an independent and powerful agency. It came after days of behind-the-scenes negotiations and speculation in the media as to the fate of the Democrats’ proposal for a Consumer Financial Protection Agency, which is heavily opposed by Republicans and business and banking groups.
“I am pushing for an office with an independent head, appointed by the President and confirmed by the Senate; that has an independent budget to do its work; autonomy to craft rules; and an ability to enforce those rules,” Dodd said in a statement.
Dodd said the “address” of the new agency is not so much the critical issue, referring to the controversial proposal of housing the entity within the Federal Reserve, which already has consumer protection rulemaking authority but has been criticized by advocates for failing to protect the public from lending abuses.
“In the past consumer protections were under the control of the Federal Reserve System and other regulators,” Dodd said. “So while we haven’t settled on the Fed as the place for this to be housed, there’s a vast difference between what is being suggested today and the status quo that failed so miserably in the past.”
Dodd reportedly met with fellow Democrats yesterday to discuss the issue, but there was no indication that any decision was reached.
I aggree! We need a Consumer Watchdog Agency, cause Citygroup still screwing up their credit cards customers, by doubling their interest charges, even with the new Credit Card Laws.