[StBernard] Frank Statement on Consumer Protection

Westley Annis Westley at da-parish.com
Wed Feb 10 02:43:39 EST 2010


February 9, 2010





Frank Statement on Consumer Protection



Washington, DC-House Financial Services Committee Chairman Barney Frank
(D-MA) today made the following statement about the need for increased
consumer protection in the financial industry:



"I welcome Elizabeth Warren's forceful Op-Ed in today's Wall Street Journal
making a strong case for increased consumer protection in the financial
industry. No one familiar with the track record of the bank regulatory
agencies with respect to protecting consumers can deny the need for an
independent agency if we are going to have effective consumer protection.
Bank regulators have traditionally treated their responsibilities for
consumer protection as a second priority.



"Those who cite safety and soundness as a major reason to oppose increased
consumer protection have it exactly backwards. In fact, the inability to
protect consumers from abuse was a major cause of the financial crisis from
which we are just emerging. Professor Warren importantly notes the example
of Citigroup's unsuccessful and unilateral attempt to bring fairness to
credit card practices. This experience demonstrates that competitive
pressures will obstruct reform unless it is done by thoughtful legislation
and regulation that applies to all.



"I welcome Senator Dodd's intention to fight to preserve an independent
consumer agency, as we were able to do against the opposition of the
financial industry in the House. Professor Warren's statement today is a
beginning to the national debate that we should have on this issue in the
coming weeks."



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