Schumer casts doubt on Fed-based consumer agency

Sen. Charles Schumer (D-N.Y.) cast doubt on a new compromise proposal for consumer financial protections, threatening its future in the Senate before it has been unveiled.

Schumer said he is " very leery of any consumer regulator being placed inside the Fed."

Senate Banking Committee Chairman Chris Dodd (D-Conn.) and Sen. Bob Corker (R-Tenn.) are pitching a proposal to put a consumer protection office at the Federal Reserve. The proposal is significantly different than the administration's original effort to set up a standalone entity.

Schumer's comments are the strongest indication of how difficult it will be for the proposal to garner support in the Senate.

"In my 20 years of trying to get the Federal Reserve to properly protect consumers, it has been an uphill, and very often unsuccessful, battle," Schumer said.