Tough Times Ahead for the CFPA...

The reform bill passed by the House before Christmas (H.R. 4173) would establish a new Consumer Financial Protection Agency.  As was noted at the time of its approval, the CFPA's jurisdiction would not reach entities regulated by the S.E.C. or banks with more than $10 billion in assets.  As described by Paul Krugman of The New York Times last week ("Bubbles and Banks"), the agency - even in its scaled back form - would "help stop deceptive lending practices."

The agency is far from a done deal.  H.R. 4173 passed in the House by a mere 21 votes; faltering support among Democrat Senators foretells of further concessions, at the least.  Last Fall, a group of over 70 law professors submitted a letter of support for the new agency.  Interested parties can follow the fate of the agency at the Consumer Law & Policy Blog, found at www.clpblog.org .

--JSC, 1/12/10