Senator Kay Bailey Hutchinson doesn’t want to enforce the Consumer Financial Protection Board due to concerns over the agency’s transparency and the dictatorial power of the agency’s director, stating, “we are so worried about the overkill in this. We have prudential regulators in the banking and lending industries now. That has been cleaned up. We have the comptroller. We have the Fed. We have the FDIC. Another layer of bureaucracy is going to cost consumers more, and it's not going to be more protective.”
Bloomberg News reporter Bob Ivry who wrote the story on the Fed’s lending trillions to banks said,-“What we're really taking a look at is what happened afterwards and the secrecy that surrounded the loans that they made during this time. They kept that -- they kept the details of the lending from the folks at Treasury who put together TARP. And they -- and nobody that we spoke with, the senators or congressmembers, knew anything about the details of the Fed lending when they were debating and ultimately passed the Dodd-Frank legislation.”
The Federal Reserve was operating in secrecy and with no oversight but now the Senator and her colleagues are worried about the CFPB. The Bloomberg new report also found “ that banks had potentially profited from the emergency lending programs by some $13 billion dollars and the Fed had spared them a measure of scrutiny that might have led to stricter reforms on the industry.”
Even if this legislation is tepid, Senator Hutchinson is sending the message only consumer protection agencies need scrutiny and reforms, but it’s OK for the central bank and all the other banks to operate in secrecy with no oversight.
Bloomberg News reporter Bob Ivry who wrote the story on the Fed’s lending trillions to banks said,-“What we're really taking a look at is what happened afterwards and the secrecy that surrounded the loans that they made during this time. They kept that -- they kept the details of the lending from the folks at Treasury who put together TARP. And they -- and nobody that we spoke with, the senators or congressmembers, knew anything about the details of the Fed lending when they were debating and ultimately passed the Dodd-Frank legislation.”
The Federal Reserve was operating in secrecy and with no oversight but now the Senator and her colleagues are worried about the CFPB. The Bloomberg new report also found “ that banks had potentially profited from the emergency lending programs by some $13 billion dollars and the Fed had spared them a measure of scrutiny that might have led to stricter reforms on the industry.”
Even if this legislation is tepid, Senator Hutchinson is sending the message only consumer protection agencies need scrutiny and reforms, but it’s OK for the central bank and all the other banks to operate in secrecy with no oversight.
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