Democrats Considering Shielding Banks From Tougher State Laws

The Washington Post reports that Democrats are considering a bill “to shield big banks from potentially tougher state regulations of credit cards, mortgages and savings accounts.”

This approach differs from that of President Obama. He wants to give states a considerable role in regulating financial institutions.

Consumers advocates are not happy with the proposal. Big banks are happy with it.

Currently banks have the option of following either federal or state rules. Local banks tend to follow state rules and big banks follow federal rules.

The Post says: Under a plan by Obama and Massachusetts Democratic Rep. Barney Frank, lenders would have to answer to both state and federal regulators. A new Consumer Financial Protection Agency, or CFPA, would set the federal standard but states would be free to impose tougher rules.

The House Financial Services Committee, chaired by Frank, planned to take up legislation creating a CFPA the week of Oct. 12.

While the financial industry is lobbying against a new regulator, Frank said the agency is needed because the Federal Reserve and other regulators dropped the ball when it came to protecting the average American using credit cards and buying homes.

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (Alexander90210.com), he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Alexander90210.com. Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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