Consumer Financial Protection Agency

[Oliver]

In his weekly address, Obama introduced the upcoming Consumer Financial Protection Agency. It sounds quite good ...
[especially since I've never heard of that project before ] :

Weekly Address: Financial Reform to Protect Consumers
Posted by Jesse Lee

The President explains his plan to address one of the major causes of the current economic crisis -- the breakdown of oversight leading to widespread abuses in the financial world. The new Consumer Financial Protection Agency will have the sole job of looking out for the financial interests of ordinary Americans by banning unfair practices and enforcing the rules. This is a cornerstone in America’s new economic foundation. [transcript]

 

[Oliver]

Okay, okay, People - settle down. I expected all the excitement, but could you people calm down and speak one after another, please?

 

[lionking]

It might have got a response in the economics section, but as politics is concerned, this is ultra-boring.

 

[Oliver]

It might have got a response in the economics section, but as politics is concerned, this is ultra-boring.

How so, you could still argue about the financial aspects of it since that is what the policy is about.

 

[Oliver]

BTW: Here's a list of things the Consumer Financial Protection Agency will do when established:

For regulations protecting consumers and investors, the proposal:

• Creates a new agency, the Consumer Financial Protection Agency, with broad authority over consumer-oriented financial products, such as mortgages and credit cards. The new agency would work with state regulators.
• Gives the new agency power to write rules and levy fines based on a wide range of existing statutes.
• Proposes new authority for the Federal Trade Commission over the banking sector, in areas such as data security.
• Creates an outside advisory panel to keep an eye on emerging industry practices.
• Says the new agency should play “a leading role” in educating consumers about finance.
• Gives the new agency authority to ban or restrict mandatory arbitration clauses.
• Improves transparency of consumer products and services disclosures.
• Says the new regulator should have authority to define standards for simple “plain vanilla” products, such as mortgages, which would have to be offered “prominently” by companies.
• Proposes the government “do more” to promote these simple products.
• Beefs up the agency’s power to regulate unfair, deceptive or abusive practices.
• Imposes “duties of care” that will have to be followed by financial intermediaries, such as stock brokers and financial advisers.
• Regulates overdraft protection plans, treating them more like credit credit-card cash advances.
• Promotes access to credit in line with community investment objectives.
• Strengthens SEC’s framework for investor protection by expanding the agency’s powers to beef up disclosures to investors, establish a fiduciary duty for broker-dealers who offer advice and expand protection for whistleblowers, including a fund that would pay for certain information.
• Requires non-binding shareholder votes on executive compensation packages.
• Requires certain employers to offer an “automatic IRA plan” for employee retirement, with investment choices prescribed by regulation or statute.
• Urges exploration of ways to improve participation in 401(k) retirement plans

Source: Financial Regulatory Reform

http://www.financialstability.gov/docs/regs/FinalReport_web.pdf

 

[lionking]

Give up Oliver. I've had orphan threads before. See it as a badge of honour - nobody else is capable of keeping up over this.