A U.S. Senate compromise to create a consumer protection unit in the Federal Reserve encountered a wall of resistance over the scope of the powers planned for the regulator.
Senator Bob Corker, the Tennessee Republican, and Banking Committee Chairman Christopher Dodd, the Connecticut Democrat, drew immediate complaints from colleagues yesterday for suggesting a unit within the Fed. The proposal would be a retreat from the Obama administration plan for a stand-alone agency and a victory for the financial industry.
Democrats on the banking panel were opposed or reluctant to give the Fed consumer responsibilities. Senator Jeff Merkley of Oregon said the Fed had an “abysmal” record on consumer protections. Republicans had different concerns. Judd Gregg of New Hampshire told reporters in Washington the unit “can’t be autonomous within the Fed.”
A cool reception from lawmakers in both parties may signal the Dodd-Corker idea lacks enough support to become part of the final legislation. Dodd and Corker, in a quest to overcome Republican opposition to Obama’s consumer plan, may have to seek other alternatives. ...
Comment: To hell with a protection unit, END THE FED!
I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.