Friday, January 29, 2010
Just in case anyone had any lingering hope that meaningful consumer and investor protection would result from the 2008 financial meltdown, read this and weep:
Today President Barack Obama signed an executive order regarding the President’s Advisory Council on Financial Capability.
According to a posting on the TheWhiteHouseSpin.com (I can't find an official executive order):
The Council will provide advice to President Obama on promoting and enhancing financial literacy and financial capability among the American people.
The White House said, "This effort is important to help keep America competitive and to assist the American people in understanding and addressing financial matters, which contributes to our national financial stability."
Isn't this what the SEC's Investor Advisory Committee is supposed to do?
According to an article in Investment News, the Council, under the auspices of the Treasury Dept., "will support financial products and services deemed beneficial to consumers." It will not have any regulatory powers that the proposed Consumer Financial Products Agency would have and leads me to suspect that the reports that the CFPA -- one of the few innovative pro-consumer protection initiatives in the "financial reform" legislation -- has been ditched in face of intense industry lobbying are true.