By Mark Huffman
ConsumerAffairs.com
January 20, 2010
Consumer
advocate Ralph Nader thinks Senate Banking Committee Chairman Christopher
Dodd is going wobbly on the proposed Consumer Financial Protection Agency.
After reading media reports that the Connecticut Democrat is considering dropping the consumer watchdog from financial regulation legislation, Nader fired off a letter to Dodd, urging him to hold his ground.
"Making this kind of deal with the Republicans and more conservative members of your own party will signal to consumers across the land that you, as chair of the Committee on Banking, Housing and Urban Affairs, have lost touch with Main Street interests," Nader warned in the letter, which he made public.
"It will show that the leaders of the Democratic Party care more about the high-rolling gamblers on Wall Street and the fat-cat bankers than the consumers, workers, taxpayers, and small investors who have been left with the costs of the financial meltdown caused by executives' greed, speculation and crimes."Dodd recently announced that he would not seek another term in the Senate, which Nader said he and other consumer advocates took as a good sign. Because he wasn't standing for re-election, they reasoned, Dodd would be free to push for tough legislation and not have to worry about whose toes he was stepping on.
"Instead, it looks like you are mistakenly thinking that a financial re-regulation bill, no matter how lacking, is better than no bill, and that you need to deliver such a bill for President Obama," Nader wrote.
Disagreeing with that point of view, Nader said it would end up being more costly to Obama if Congress passes a bill that fails to adequately rein in "the banking and financial interests that have so damaged our economy."
The Consumer Financial Protection Agency should be independent with strong leadership, not part of some other existing bank-indentured financial regulatory agency, Nader said.
Nader said consumers need an independent agency that will serve their interests without being subject to influence from the parties that are being regulated. In the past, he says, bank regulators have been overly influenced by Wall Street.
"Senator Dodd, it is time for you to be a transforming leader and champion for many millions of consumers," Nader concluded.
He urged Dodd to convene a representative group of consumers, including aggrieved individuals, at a news conference to demonstrate his determination to reach out to the American people.
