White House makes case for consumer protection agency

Senate Republicans have argued in recent days that a proposed consumer protection agency is too sweeping in scope and would, for example, put community banks under two regulators. The consumer agency is a major sticking point on the bill. 

“This isn’t about burdening community banks with more regulation,” Psaki wrote. “It’s about holding non-banks like mortgage brokers to the same standards as the local banks they compete against.”

Seven agencies oversee rules on consumer financial products and services but most are focused on the “health of banks and none sees consumer financial protection as its top priority,” allowing parts of the consumer market to operate without much oversight. 

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