By Silla Brush | Posted: 07/21/09 10:33 AM [ET] - 07/21/09 10:31 AM EDT
The agency idea is one of the first major parts of Obama’s overhaul to be debated in Congress as lawmakers begin to consider proposals to regulate “systemic risk,” derivatives and executive compensation policies.
The new consumer agency, backed by Frank and other Democrats, would gain the consumer protection authorities of other banking regulators. Industry groups have pushed back hard on the idea, saying it would have sweeping authority that could hamper financial innovation. More than a dozen groups, including the U.S. Chamber of Commerce, urged the committee to slow down the debate.
The House is scheduled to adjourn for August on July 31 and return the week of Sept. 7.