Advocating for Regulatory Reform

The House is currently debating the Wall Street Reform and Consumer Protection Act of 2009 (H.R. 4173) – which includes the establishment of a Consumer Financial Protection Agency (CFPA). The CFPA is intended to protect consumers by regulating financial products and abusive lending practices. Given that we are living through the worst economic crisis since 1929, it’s no surprise that the public is crying out for this kind of banking reform. A poll, recently conducted  by Anzalone Liszt Research, of 1000 likely voters found:

• 70% of voters believe that America’s financial system needs major reform;
• Most voters are unaware of financial reform legislation;
• Once voters hear a description of the financial reform plan, support for it rises from 35% to 60%; and
• Over two thirds of Democrats, Independents and Republicans polled support major reform.

However, despite the recent banking collapse and strong public support for reform, if you tune into today’s debates on the House floor, you might think you’ve fallen through the rabbit hole.  You’ll find yourself in a strange world where Members of Congress feel they need to protect Wall Street – not Main Street.  A world where banks, which just received hundreds of billions of taxpayer money through TARP dollars, are treated as if the banking collapse wasn’t a result of their reckless behavior.

Yesterday, in a closed room meeting, House leadership accepted a modified version of Congresswoman Melissa Bean’s (D-IL) proposal to strip state attorneys general of their power to police financial institutions.  Bean’s amendment was backed by her fellow Blue Dogs and the New Dems (aka:  “friends” of Wall Street), who leveraged their power by threatening to vote against the CFPA if this provision was not included.

Yet, this is still not enough for the banks.  Today the banking lobby is fighting to completely eliminate the CFPA from the bill.  Their champion, Congressman Walt Minnick (D-ID), has introduced an amendment that will do just that.  It would leave the enforcement of consumer protection and civil rights laws in the hands of the same existing regulatory bodies that resoundingly failed to enforce them time and time again.

Isn’t the definition of insanity “doing the same thing over and over again and expecting the same result?”  Maybe we did infact fall through the rabbit hole.  Take Action Today on the CFPA – make sure that Congress passes a strong Consumer Financial Protection Agency