Jeff Madrick on the politics of protecting consumers

August 19, 2011

As currently designed, the Consumer Finance Protection Bureau will have broad powers to set rules for many types of lending in the U.S. — everything from mortgages and credit cards to payday loans and check cashing firms. The bureau was the brainchild of Elizabeth Warren, the former Harvard Law professor and longtime consumer-rights champion.But from its inception, the bureau has been criticized by business groups and Republican leaders in Congress who argue that its powers are too broad, and that its potential regulations will be a drag on the economy. Earlier this year, 44 Republican senators sent President Obama a letter stating that if changes weren’t made, they’d refuse to confirm anyone to run the bureau, which would seriously hamper its enforcement ability. Nevertheless, in July, President Obama nominated Richard Cordray to head the new bureau. Cordray was the former attorney general of Ohio, and is well regarded by many consumer advocates, including Elizabeth Warren.

And Republican leaders said again that until their proposed reforms to the consumer bureau are made, they won’t confirm anyone for the job. To help wade through the politics of consumer protection, Need to Know’s Alison Stewart spoke with Jeff Madrick, a senior fellow at the Roosevelt Institute in New York. His most recent book is “Age of Greed: The Triumph of Finance and the Decline of America, 1970 to the Present.”

Related:
Neither a borrower, nor a lender

Watch the rest of the segments from this episode.

Last modified: August 19, 2011 at 6:29 pm
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Comments

  • guest

    What we need now is this:
    Forget Politics, A Sense of Urgency is Needed to Improve the Economy.
    It does not matter whether the cadidate is a Republican or a Democrat.
    What we need is what the candidate can do for the country and help people succeed.
    It appears that none of these candidates really care for the people or the country. Candidates claiming that they are strong Republicans lead the nation to Recession and strong Democrats lead the nation to Deficits.
    It is the individual that matters not the party symbol. Extreme candidates do not help either. We need someone who is moderate and who can balance the budget and lead the nation to prosperity not to poverty

    That is what American needs now. Not Dancing with the Stars, Desperate Houswives, Jerry Springer.