Posts
'via Blog this'
Background
The idea for a CFPA originated[1] with Elizabeth Warren, Chair of the Congressional Oversight Panel overseeing the U.S. banking bailout[2]. In a 2007 article in Democracy Journal[3], Warren wrote,It is impossible to buy a toaster that has a one-in-five chance of bursting into flames and burning down your house. But it is possible to refinance an existing home with a mortgage that has the same one-in-five chance of putting the family out on the street... Similarly, it’s impossible to change the price on a toaster once it has been purchased. But long after the papers have been signed, it is possible to triple the price of the credit used to finance the purchase of that appliance ... The difference between the two markets is regulation.
Opponents of the CFPA
It is impossible to buy a toaster that has a one-in-five chance of bursting into flames and burning down your house. But it is possible to refinance an existing home with a mortgage that has the same one-in-five chance of putting the family out on the street... Similarly, it’s impossible to change the price on a toaster once it has been purchased. But long after the papers have been signed, it is possible to triple the price of the credit used to finance the purchase of that appliance ... The difference between the two markets is regulation.
Opponents of the proposal include [16]
The American Bankers Association (ABA)
- President Edward Yingling
Yingling on the CFPA proposed by President Obama: "There is no shortage of laws designed to protect consumers."[17]
Yingling on the CFPA provision that would require all banks communications with their consumers be "reasonable": "This term is so vague, no banker would know what to do with it."[18]
The American Financial Services Association (AFSA) is a leading opponent of the proposed Consumer Financial Protection Agency.
- Bill Himpler, executive vice president for government affairs
- Steve Bartlett, CEO
- Scott E. Talbott, senior vice president of government affairs
"Our goal is to kill it."[19]
- Steve O'Connor, senior vice president of government affairs
- Ryan McKee, senior director
"We are working to kill the (CFPA) bill."[20]
- David Hirschmann, head of the U.S. Chamber of Commerce Center for Capital Markets Competitiveness.
- Stop The CFPA website, "A product of the U.S. Chamber of Commerce"
Lobbying
Lobbying expenditures
The US Chamber of Commerce Chamber announced on Sept. 8, 2009, an advertising campaign of at least $2 million aimed at defeating CFPA.[21]
No comments:
Post a Comment