Article

Keeping Banks Honest

When the Obama administration formally unveiled its proposal for creating a financial consumer protection agency last week, Scott Talbott of the Financial Services Roundtable, the financial industry's lobbying arm, expressed concern that the new agency would set not a ceiling but a floor for consumer protection rules. "States are encouraged to go further to provide additional consumer protections, which will create a patchwork of 50 state regimes," he said.

When the Obama administration formally unveiled its proposal for creating a financial consumer protection agency last week, Scott Talbott of the Financial Services Roundtable, the financial industry’s lobbying arm, expressed concern that the new agency would set not a ceiling but a floor for consumer protection rules. "States are encouraged to go further to provide additional consumer protections, which will create a patchwork of 50 state regimes," he said.

Talbott is spot-on in identifying what the new agency would do, but what’s giving him pause should be embraced by consumers and consumer advocates. Creating a regulatory floor upon which states can build is an absolutely necessary step in the process of reforming financial regulation, and should be done over the objections of the financial industry.

Read more here.

The positions of American Progress, and our policy experts, are independent, and the findings and conclusions presented are those of American Progress alone. A full list of supporters is available here. American Progress would like to acknowledge the many generous supporters who make our work possible.

Authors

Pat Garofalo

Managing Editor, TalkPoverty

You Might Also Like