Thursday, September 24, 2009
CFPA: Evening Out the Financial Playing Field
By: Robert Katz
With the current recession coming to an end as we look to the future we must learn from what has happened. President Obama has taken it upon himself the thus make sure this never happens again. His proposal for a Consumer Financial Protection Agency is aimed at preventing all the risky lending and borrowing that got us into this mess in the first place through regulation of banks, credit card companies, and other financial institutions.
Giving an agency authority like this is a new and revolutionary idea, and is directly aimed at protecting the consumers. All the democrats in congress are trying their hardest to get this proposal passed, but the banks and credit card companies are gathering their forces to fight back. The CFPA as proposed would have regulatory authority over any and all services or product offerings by financial institutions, with most types of insurance as the only exception. In affect allowing it to create rules and regulation over real estate, mortgages, credit cards, debit cards, consumer loans, financial advisory services, prepaid cards, etc. To say the least, financial institutions aren't happy about this for it will result in a massive loss in revenue for them, losing the ability to screw over their customers, of billions a year.
I for one am all for this agency and feel this is one very large step Obama is making towards the big change he promised us in the beginning of his administration. Just think, with billions of dollars put back into the pockets of the consumers this could possibly bring back the middle class and give our economy the push it needs to be on the rise again.