Obama Proposes New Agency to Fight "Era of Irresponsibility"

President Barack Obama is tackling special interest groups with renewed zest and determination, and that can mean only one thing: a new federal agency. Announced June 17, the proposed Consumer Financial Protection Agency would heavily regulate banks and lending firms. Specifically, the agency would exist to protect consumers against shady practices when doing mortgage and credit card business with banks during our current "era of irresponsibility."

From Obama's Saturday address:

Some argue that these changes—and the many others we've called for—go too far. And I welcome a debate about how we can make sure our regulations work for businesses and consumers. But what I will not accept—what I will vigorously oppose—are those who do not argue in good faith….We've already begun to see special interests mobilizing against change. That's not surprising. That's Washington.

You know what else is typically Washington? Assuming bad faith on the part of pro-business interest groups (in this case, the banking industry). Obama's reaction certainly isn't surprising.

Pre-housing collapse, consumers were accepting unsuitable loans just as fast as the banks could issue them, so the whole "era of irresponsibility" is really a two-way street here. It's nice that he welcomes debate, though. Obama's chosen method of fixing a problem caused by government regulation with even more unnecessary regulation certainly deserves to be questioned.

Read here for more details about the new agency.