Wednesday, May 20, 2009
The Washington Post reports that the Obama administration is seriously considering the creation of a new federal agency that would have broad authority to protect consumers who use financial products, including mortgages, credit cards and mutual funds. Professor Elizabeth Warren (Harvard Law), the leading proponent of the commission, chairs the Congressional Oversight Panel that released, in January 2009, a Special Report on Regulatory Reform that outlined the concept. Industry opposition is expected to be fierce, and the SEC is sure to resist losing authority to regulate mutual funds -- an area where, to my mind, it has done a very poor job. WPost, U.S. May Add New Financial Watchdog.