New Federal Consumer Protection Agency on Hold
On July 21, 2009, House Financial Services Committee Chairman Barney Frank said that he will postpone a previously planned vote on legislation to create a new federal consumer protection agency until after the August recess. The new agency was included in the Obama administration's June 2009 proposal to overhaul the financial sector as an oversight body charged with protecting consumers of mortgages, credit cards and other financial products. The Washington Post has reported praise for the proposed new agency from consumer protection groups, and sharp criticism from several industry groups, who argue that that the proposed agency will cause increase costs for consumers and further exacerbate the patchwork nature of current financial sector regulation.
