Obama's Consumer Agency Not Looking So Strong

Barack Obama promised American consumers a new agency that would look out for their interests. A new agency that would regulate lenders such as banks and credit card companies. Make sure everything was on the straight and narrow.

Yes, more government bureaucracy. More rules. More regulations. More regulators. More people making it difficult to do business.

But it would be worth it, right, if consumers could get some peace of mind?

I am a free-marketer, but I admit I enjoy it when government regulation lets me think a little less, does much of the hard work for me, keeps the businesses I deal with on certain firm ground. I appreciate that credit card companies can't suddenly jack up my rates and otherwise screw me around since the recent federal legislation passed.

The Washington Post reports:

Legislation to establish President Barack Obama's proposed Consumer Financial Protection Agency cleared a key hurdle this week. But it's already been watered down from what Obama proposed and will likely become even weaker when it comes up against higher hurdles on the House floor and in the Senate. It may even die along the way.

Banks flatly oppose a new consumer agency, arguing their current regulators can handle the task. The U.S. Chamber of Commerce has weighed in with a $2 million ad campaign against the plan. And some industry claims, particularly those from bankers back home, have proved persuasive with many lawmakers.

Ahead lie enormous obstacles: potentially debilitating amendments on the House floor and, ultimately, a tougher Senate landscape…