Whos Leading the Fight Against Consumer Financial Regulation?
The Chamber of Commerce doesn’t think consumers need real protection after the financial crisis. Tim Fernholz | September 9, 2009 | web only The financial crisis has taught people to be skeptical of lenders. The crash of 2008 came after borrowers, half of whom qualified for safe, prime loans, were steered instead toward sub-prime loans that lenders promised they could pay back. Mortgage lenders weren’t even checking to see if people had jobs before offering loans that would bankrupt them. After considering real-estate lending alongside deceptive credit-card practices, predatory payday loans, and multiplying bank fees, it’s hard to argue that consumers have been adequately protected from the financial sector. In response, the Obama administration, along with Democrats in Congress, has proposed the creation of a Consumer Financial Protection Agency (CFPA), which would house all federal consumer financial regulation in one new office. The CFPA would make sure lenders act transparently and
