Merkley calls consumer protection plan inadequate

[depakid]

Source: The Oregonian



Oregon Sen. Jeff Merkley added his name today to a bipartisan chorus criticizing a Senate proposal giving the Federal Reserve power to police banks and other financial institutions from abusing consumers. In a statement and in comments on the latest proposal from Sen. Chris Dodd, D-Conn., Merkley said the Federal Reserve has "done an abysmal job" with the limited powers it currently has.

Expanding that authority to make the panel the primary enforcer of rules protecting consumers will not work, he said. "The Fed’s leadership cares first and foremost about monetary policy -- that’s in the penthouse," said Merkley, a member of the Banking Committee who has been an active member of the group pushing for tougher government regulation of credit cards, banks and financial institutions.

"Safety and soundness considerations come next. Then, way down in the basement is consumer protection. While a new consumer division would presumably have more power and independence, there is no reason to believe that the culture of the Fed will change," he said.

Merkley's comments came as key negotiators on the Banking Committee were closing in on an agreement that would house a government consumer entity inside the Federal Reserve, the U.S. central bank known as the Fed, but give it autonomous power to write regulations, according to three people familiar with the negotiations.

Read more: http://www.oregonlive.com/politics/index.ssf/2010/03/merkley_calls_consumer_protect.html

[jaybeat]

1. That's our guy!

Jeff continues to use his historically powerless freshman term to make a mark for himself as one of THE progressive voices in the Democratic caucus. Granted, the Fed's an easy target, but with folks like Dodd pulling the levers, Jeff does us Oregonians proud.

(Don't get me wrong, Blue O'rs: Steve Novick is a state treasure and someone I will support to as high an office as he wants to go. Just sayin' that Jeff's doing a good job in the corporate buy-out parlor, aka, the US Senate.)

:applause:

[scentopine]

2. Dodd really laid a bi-partisan turd. The Fed? The arrogance is stunning -nt