In an article called Idea of Consumer Financial Products Watchdog Gaining Traction, head of the Congressional Oversight Panel for the TARP, Elizabeth Warren,
“has been a vocal advocate for the need for a financial product safety commission,”
which in the past few weeks has been getting consideration by the Obama Administration. Consumers have been over spending money, which has caused a lot of debts in the USA, which is why
“a measure like this, properly done, would represent real progress.”
So the Obama Administration, right now is all about protecting the consumers who are using financial products such as mortgages, credit cards. etc. If this new project comes about and its approved, it will
“centralize enforcement of existing laws and create a vehicle for imposing tougher rules.”
Some people argue that if you impose these tougher rules that not many consumers will be able to benefit from these financial products. Others say that it might trigger the Security and Exchange Commission to looser power, and personell and funding. This means that even more people are going to laid off their jobs.
Warren’s proposal was didnt have much attention in Washington, but now Obamas Administration has shifted because of the financial crisis.
I think that if this project is passed, a lot of consumers will be denied these products because most likely they do not have the credit to take advantage of credit cards, mortgages etc. I think if they enforce the rules they are also protecting the consumer, that way they wont go into debt, and they can actually pay off their bills and not owe money. Maybe this program will defenitely help out the financial crisis that way.
By: Armenis Perez
