Proposals to house a new consumer protection agency inside the US Federal Reserve have alarmed both liberal and moderate Democrats, who fear their party is about to compromise too far.
After Chris Dodd, the Democratic chairman of the Senate banking committee, began considering scrapping the Consumer Financial Protection Agency as an independent body, firebrands on the left who want a new pro-consumer agency to tell banks which products they can sell have voiced dismay.
“Granting the Fed consumer protection authority would create a lapdog for Wall Street, not the watchdog consumers need,” said Carmen Balber of Consumer Watchdog, a pressure group.
Full story: FT.com / Financials – Plans for Fed link to CFPA draw fire