President Obama wants to create the Consumer Financial Protection Agency. The purpose of the agency is to protect consumer credit and their banking transactions. Additionally, The Federal Reserve Bank will have the added responsibility of supervising large financial institutions and monitor risk within the financial system. Obama even wants to give the Consumer Protection Agency some of the current responsibilities of the Federal Reserve Bank and the Treasury Department. Obama’s goal is to prevent big bank failures such as Lehman Brothers. He further wants to protect consumers from credit risks from bad lending practices due to mortgages and credit cards. It is hoped that the new agency will fine companies who have abusive practices and will help prevent another recession.
Do you think the Consumer Financial Protection Agency will serve its intended purpose?