
The House Financial Services Committee passed a watered-down version of the proposed Consumer Financial Protection Agency Thursday morning.
In the words of Financial Services chairman Barney Frank: "We have restricted the CFPA from what the administration proposed."
The CFPA is largely the idea of Elizabeth Warren, the Harvard law professor who serves as the chair of the Congressional Oversight Panel for the TARP program, and who has long advocated for stronger consumer protections.
Warren has a point. It's absurd that we offer no meaningful protections or information for customers when it comes to financial products. Without that information customers can't make good decisions and without those decisions the market doesn't function.
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