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Obama Defends New Consumer Financial Agency

By Michael A. Fletcher
President Obama defended his proposed Consumer Financial Protection Agency today, saying it would tamp down on deceptive lending practices and complicated contracts that he said often hurt consumers.

Obama proposed the agency as part of his administration's sweeping rewrite of rules governing the financial sector. The proposals are now before Congress and lobbyists are pushing back against the proposed agency, saying it will create overlapping layers of regulation and put government in the middle of legitimate business decisions.

Speaking in his weekly radio and Internet address today, Obama said new regulations are needed to prevent the type of abuses that contributed to last year's financial meltdown. "It's no coincidence that the lack of strong consumer protections led to abuses against consumers," he said. "The lack of rules to stop deceptive lending practices led to abuses against borrowers."

With the creation of the agency, Obama said "those ridiculous contracts -- pages of fine print that no one can figure out" would be banned at banks and other financial institutions.

"Some argue that these changes -- and many others we called for -- go too far," Obama said. "And I welcome a debate about how we can make sure our regulations work for businesses and consumers. But what I will not accept -- and I will vigorously oppose -- are those who do not argue in good faith. Those who would defend the status quo at any cost."

By Web Politics Editor  |  June 20, 2009; 6:00 AM ET
Categories:  Barack Obama  
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The principle of lending money is simple and well understood, dating back to Biblical times. If done ethically and transparently lending requires neither an Ivy League MBA nor a multi-million dollar salary and bonus.

That a bunch of smart idlers from some of our best universities have deviously devised ways to skim every “creative financial transaction” to the tune of billions of dollars is neither useful nor justified and certainly not in the national interest.

I say put these slackers to actual productive work creating the value added jobs the nation needs to compete and remain number 1 in the future world economy. It would be better for the nation and certainly better for these creative dawdlers.

Posted by: JRussell42 | June 20, 2009 5:08 PM | Report abuse

Yes the Comrade in Chief needs more federal employees and a new host of Czars. How about just re-enacting the Glass-Steagall Act. Any discussion of that?

Support Ron Paul and HR 1207 for an audit of the Federal Reserve for the first time in over 50 years.

2010 change we can count on. Send all of the Spendocrats packing starting with Pelsoi, Dodds, Reid and Franks.

Posted by: Bubbette1 | June 20, 2009 11:12 AM | Report abuse

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