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Blue Dogs Offer Own Spin on Finance Reform

Float alternative to Obama's financial protection agency

By Kevin Spak,  Newser Staff

Posted Sep 21, 2009 1:40 PM CDT
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(Newser) – Blue Dogs are digging in against the idea of creating a “consumer financial protection agency,” a key provision in Barack Obama’s financial regulatory reform plan, Politico reports. Instead, they want existing regulators to collaborate by way of a “consumer financial protection council.” “We’re trying to come up with something that will achieve the objectives of the White House, without creating a new standalone federal regulator,” says Rep. Walt Minnick.

Community bankers have warned that another level of regulation could ruin them, and Minnick says his council would handle the job of ensuring that consumer financial products—including those offered by traditionally unregulated institutions like mortgage lenders—are safe and sensible. “We’re punishing our independent community banks, and they’re really not the ones who got us into this mess,” says one Blue Dog chief of staff. “I expect we will be supporting wholeheartedly the Minnick alternative.”

In this Nov. 10, 2008 file photo, Walt Minnick, Idaho Representative-elect responds to questions in downtown Boise, Idaho.
In this Nov. 10, 2008 file photo, Walt Minnick, Idaho Representative-elect responds to questions in downtown Boise, Idaho.   (AP Photo/Charlie Litchfield, File)
Walt Minnick, Democratic candidate for 1st District in U.S. Congress race, speaks during press conference after his apparent victory Boise, Id. on Wednesday Nov. 5, 2008.
Walt Minnick, Democratic candidate for 1st District in U.S. Congress race, speaks during press conference after his apparent victory Boise, Id. on Wednesday Nov. 5, 2008.   (AP Photo/Paul Hosefros)
Barney Frank speaks at MassBay Community College in Wellesley, Mass., Saturday, Sept. 12, 2009 about health care reform.
Barney Frank speaks at MassBay Community College in Wellesley, Mass., Saturday, Sept. 12, 2009 about health care reform.   (AP Photo/Bizuayehu Tesfaye)
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COMMENTS
Showing 3 of 9 comments
bewilderbeast
Sep 22, 2009 9:00 AM CDT
Never ceases to amaze me how ordinary people believe (and forgive) the real thieves and liars. That's why we're ordinary and they're politicians, lobbyists and bankers, I guess. We buy the BS every time. Even right now, they're busy getting us to take our eye off the ball with this diversion. All that's needed is simple laws that separate retail banks and investment banks, demand clear solvency levels, and honest "products" which have to be vetted so banks can't gamble with your money. Instead, we'll get a whole lot of words and banks will carry on doing exactly what they did to get us here: They will lie, thieve and gamble with your money, paying themselves upfront while you have to wait to see if their gamble came off to see if you make anything.
SilenceDogood
Sep 21, 2009 11:54 AM CDT
Reader, I think you confuse small and mid size banks with the mega-bankers that screwed this country. The truth is that the smaller banks are in the same boat we are, and we need them badly. The small and mid sized banks in America are the people who makes loans to create jobs, these guys are getting hammered by what happening to the US economy. They are hanging on by their nails. It’s fine to get angry, but pick the right guy to get angry at. A RECOVERY WILL NOT HAPPEN IF WE DO NOT HAVE BANKERS. GET IT. IF YOU KNOW ANYTHING ABOUT THE ECONOMY, KNOW THIS. Bankers are normal people, but instead of selling tacos they sell money for a fee, give them a break.
godawgs
Sep 21, 2009 10:06 AM CDT
@sickend I am not forgiving of the banks at all but if you keep your financial house in order then you don't have to worry about these fees. I have enough money in my savings to pay my mortgage for 6 months, i pay off my credit card in full each month, and i know what my balance is before I go shopping. Do that stuff and you don't have to worry about this stuff.

 
consumer protection • Barney Frank • Obama administration • Blue Dog Democrats • financial reform

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