From Fazle Rashid
NEW YORK, Jan 20: Reeling in shock from an electoral debacle in a safe and long retained Democratic Senate seat in Massachusetts to rival Republicans President Obama did not shy away from expressing his determination to create a bipartisan independent Consumer Protection Agency (CPA) even though the lobbyists against the move are thinking of challenging the government in the court calling it ultra vires of the constitution.
The new agency will protect the consumers against lending abuses that contributes to financial risks. The President's move also signaled a tougher line and a more direct role as Congress weighs an overhaul of banking operations, the New York Times reported. A strong independent office is becoming the flashpoint in the debate over regulation.
The woes in several financial behemoths resurfaced strengthening the hands of those who want greater control over the recklessness of the banks. Citi group yesterday announced a third quarter loss of $7.6 billion. Unless the bank rebounces in 2010 Citigroup Chief Executive Officer Vikram S. Pandit may lose his job. Its troubles are far from over. Insiders say morale is low. The bank has axed 110,000 jobs.
A former hedge fund manager Mark Lenowitz has been surreptitiously cooperating with Federal Investigators probing insider trading for more than two years to save his own skin. Government's battle against Wall Street's lucrative whispering game has generated more cases.
Obama firm to create CPA
FE Team | Published: January 21, 2010 00:00:00 | Updated: February 01, 2018 00:00:00
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