Senator Dodd considers selling out the Consumer Financial Protection Agency

Senator Christopher Dodd (D-Conn.) is reportedly considering dropping the Consumer Financial Protection Agency in an effort to win bi-partisan support for a broader financial reform package. Senate Republicans (and their allies in the banking industry) have violently–and  predictably–opposed the CFPA. The move by Dodd is an apparent attempt to alleviate their concerns. According to reports, Dodd’s new plan proposes that consumer protection powers be assigned to another federal agency.

If this report is correct, this is disappointing news for consumers. As a recent New York Times article notes, the existing federal regulatory bodies for banks and credit card companies typically support their wishes at the expense of consumers.  I also have to wonder if Dodd’s impending retirement–and the resulting lack of accountability to voters–has anything to do with his sudden change of heart.

The Washington Post | Sen. Dodd may drop push for consumer financial protection agency | January 16, 2010