Holding The Banksters Accountable-- Congress On The Way To Creating A Consumer Financial Protection Agency

Thursday a lot of us may have missed an historic vote in the House Financial Services Committee. I don't know if anyone is calling it "bipartisan" just because one Republican, Mike Castle, went along for the ride by Barney Frank's committee voted 39-29 to create a federal agency devoted to protecting consumers from predatory lending, abusive overdraft fees and unfair rate hikes. One of the strongest and clearest voices on the committee for consumer protection is Florida Congressman Alan Grayson, who sees this as one step in the right direction of establishing a more equitable balance between ordinary working families and powerful corporate entities. "The entire existing regulatory regime for the banks," he told us after the vote, "is concerned only with the wellbeing of the banks. It's about time that we did something to promote the wellbeing of their exploited, abused customers."

Of course, Grayson was hardly the only person pushing for these basic consumer protections. Obama had asked Congress to address these things and Barney Frank has been adamant. He seemed elated after the vote as well: "This is a much stronger bill than people predicted months ago and it will only get better going forward." He recommended we take a look at remarks that Elizabeth Warren and Travis Plunkett made after the vote. We all know who Warren is, of course (Matt Taibbi's candidate for president) but Travis Plunkett is with the Consumer Federation of America-- an organization that looks to protect consumers, sort of a good version of the violently anti-consumer U.S. Chamber of Commerce. First Warren: "I just want to say, when I first came to Washington with the idea of this agency, everyone told me: 'The banks always win. Quit now, because the banks always win.' They didn’t win today. Chairman Frank has done something that is historic here... I never thought I would see this day, so I am delighted." Plunkett was as enthused as Warren and as overjoyed as the Chamber was bummed. "We think it's very significant that the first major hurdle has been cleared for this legislation. We are on the brink of a monumental achievement for consumers."

The Chamber called it "a step backward." For them indentured servitude would be a step in the right direction. The Chamber lobbyists were able to hold all the Republicans but Castle in line and they peeled off two of the most reactionary Democrats on the panel, Travis Childers (Blue Dog-MS) and Walt Minnick (Blue Dog-ID), two who can always be counted on to vote against the best interests of ordinary working families when those interests are in conflict with banksters. Even Republicans in serious electoral difficulties because of anti-family voting records-- like Michele Bachmann (R-MN), Lynn Jenkins (R-KS), Thaddeus McCotter (R-MI), Judy Biggert (R-IL), Jim Gerlach (R-PA), and Scott Garrett (R-NJ)-- voted against their own constituents. Lobbyist money was just too tempting for them. Opposite of these sleazy characters are members of Congress who really want to take the opportunity to make the lives of ordinary citizens better through government action. Brad Miller (D-NC) is a good example:

“The Committee vote today is a rifle shot at abusive financial practices, not a shotgun blast that would hit community banks making an honest living from fair lending practices. It’s no surprise that the lenders with the worst practices are still fighting tooth and nail against this bill. The last thing they want is to have to make an honest living."

And not all the Blue Dogs on the committee joined Minnick and Childers in their lobbyist-inspired sprint across the aisle. Dennis Moore (D-KS) was more Democrat and less Blue Dog Thursday:

“Protecting consumers is a must in any new financial regulatory system, and the Consumer Financial Protection Agency will help make that happen. I commend Chairman Frank for his leadership on these issues, and I look forward to working with him and other Members as we move forward in the process to improve not only CFPA, but the rest of the financial regulatory reform package so we can strengthen protections for all consumers, investors and taxpayers."