A Collaboration with the University of Pittsburgh

House committee delays consumer financial protection agency legislation

[JURIST] The US House Financial Services Committee [official website] on Tuesday delayed action on legislation [HR 3126 materials] that would create a consumer financial protection agency, slowing progress on a key Obama administration project. The delay was granted at the behest of financial industry leaders, who on Monday sent a letter [text, PDF] to the ranking members of the committee requesting a more measured approach to deliberations. The agency, proposed by the Obama administration [JURIST report] last month and put forth by Representative Barney Frank (D-MA) [official website], would assume significant oversight of the financial industry from the Federal Reserve, Federal Deposit Insurance Corporation, and Comptroller of Currency [official websites]. With the delay, the bill will not be the focus of House action until after the August recess.

Greater protection for consumers and regulation of the financial industry has been a priority of the Obama administration in the wake of the economic crisis of the past 16 months. In March, US Treasury Secretary Timothy Geithner [official profile] indicated that the Department of the Treasury [official website] would propose stronger rules [prepared remarks; JURIST report] in response to the current economic crisis, and called for both the Reserve and Treasury to be given broader powers. In February, Geithner had emphasized increasing restrictions on financial institutions [press release, JURIST report] receiving government assistance.

About Paper Chase

Paper Chase is JURIST's real-time legal news service, powered by a team of 30 law student reporters and editors led by law professor Bernard Hibbitts at the University of Pittsburgh School of Law. As an educational service, Paper Chase is dedicated to presenting important legal news and materials rapidly, objectively and intelligibly in an accessible format.

© Copyright JURIST Legal News and Research Services, Inc., 2013.