The long-awaited Consumer Financial Protection Agency will come a step closer to reality Monday when Sen. Christopher Dodd (D-Connecticut) introduces his new bill of financial regulations.
There are many potential problems with the CFPA -- among other things, that it will hurt consumers by driving up compliance costs and limiting choice, and that it will police small matters while not making any difference on the big ones.
But the quizzical quidnunc from the Nutmeg State has packed an even less pleasant surprise into the bill. The CFPA will apparently be part of the Federal Reserve Bank.
Here are the basics of Dodd's expected proposal. Given the toxicity of the Fed in public opinion, it's not surprising that Dodd -- no stranger to the kind attentions of banks and financial services giants -- blames the shift from an independent to a Fed-controlled CFPA on the necessity of compromising with Senate Republicans.
