Obama asks Senate to reject GOP version of consumer protection
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As Senate Democrats and Republicans continued their clash over financial regulation overhaul, President Obama on Thursday called on lawmakers to reject what he called GOP efforts to weaken consumer protections.
In a sharply worded statement, the president decried what he said were partisan efforts to weaken reform efforts, particularly those dealing with consumer protection. He singled out a Republican amendment, which Obama said was worse than laws already on the books.
“I will not allow amendments like this one written by Wall Street’s lobbyists to pass for reform,” Obama stated. “This amendment will significantly weaken consumer protection oversight, includes dangerous carve-outs for payday lenders, debt collectors and other financial services operations, and hurts the ability of community and local banks to compete by creating an unlevel playing field with their non-bank competitors.”
Republicans defended their amendment, being debated on Thursday.
Sen. Richard Shelby of Alabama, the ranking Republican on the Banking Committee, argued that his party’s version of consumer protection was better than the Democrats’ because it did not create stifling rules for small businesses that had no role in the recent financial meltdown. Nor does it create an unwieldy bureaucracy, he said.
“We want to strengthen consumer protection,” Shelby said in televised remarks from the Senate floor. “We want clear and understandable disclosure, and regulators to have sufficient authority to combat fraudulent practices.”
Consumer protection, he said, “does not stand in isolation. It is inherently linked with safety, soundness” of the overall financial system.
In his statement, Obama said he was prepared to work with the GOP.
“As I have said throughout this process, I want to continue to work with Democrats and Republicans because protecting the American people should not be a partisan issue,” Obama stated. “But we must work together in good faith. Alternatives that gut consumer protections and do nothing to empower the American people by cracking down on unfair and predatory practices are unacceptable, and I urge the Senate to vote no on weakening consumer protections and instead stand with the American people.”
-- Michael Muskal
