PRESS RELEASE
Frank Chairs Hearing on Proposed Consumer Financial Protection Agency
September 30, 2009
WASHINGTON, DC -- Congressman Barney Frank, Chairman of the House Financial Services Committee, held a hearing today to discuss the need for an independent agency to protect consumers against unfair practices by financial services companies. Frank has introduced legislation in the House to create a Consumer Financial Protection Agency, and a similar proposal has been championed by the Obama administration.
In his opening statement, Congressman Frank argued that existing institutions have failed to protect consumers against abusive practices. He pointed out that although Congress had given the Federal Reserve authority to oversee mortgage lending in 1994, the Fed failed to use that power during the boom in subprime lending which was a major cause of the financial crisis.
The proposed legislation is part of comprehensive financial regulatory reform undertaken by the House Financial Services Committee this year, including bills to restrict subprime lending and to stop deceptive practices by credit card companies.
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