New bank regulations held up over consumer protection details

New bank regulations held up over consumer protection details
Tags: Bank / Credit Union, North America
April 6, 2010

DailyFinance reports that Senate negotiators are laboring to reach agreement over consumer protection provisions in a sweeping package of financial market legislation. At issue is whether a government consumer watchdog should be free from bank regulators to write rules that govern everything from credit card and overdraft fees to payday loans and mortgages. A proposed agreement would place the new agency within the Federal Reserve, but would give it autonomy from the parent organization.

The idea would be a retreat from President Barack Obama's initial insistence on a standalone agency. But the executive branch appears to have backed off from this tactic for the sake of reaching an agreement with opponents.