Opponents of real consumer protection have been highly critical of creating a new Consumer Financial Protection Agency. But in carrying water for banks and fringe financial firms who want license to screw over their customers while avoiding the consequences, they've set themselves in opposition to a huge chunk of their normal political coalition. How's that?
- Christian Faith leaders. A coalition of Christian leaders has come together in support of new regulations, ranging from Jim Wallis' Sojourners to the United Methodist Church.
- Small government. As I've noted ad nauseam, despite the conservative complaints about a creating an expansive new bureaucracy, founding a consumer financial protection agency would actually consolidate seven existing bureaucracies and 17 pieces of legislation for more efficient and accountable government.
- The Military. The Defense Department and a variety of groups that advocate on behalf of military families have made clear their support of consumer protection in order to protect service members; one DoD official said point-blank that "the financial readiness of ... troops and families equates to mission readiness."
- States' Rights. While we've long awarded conservatives the TAPPY for Most Convenient Support of States Rights, the discussion of the federal government's ability to prevent state-level regulators from doing their job is pretty bleak: While reformers hope to let federal rules remain a floor while giving enforcement powers and additional jurisdiction to state and local watchdogs, Republicans seem intent on supporting legislation that doesn't allow any role for local bodies.
You get the sense that they haven't really thought too deeply about their talking points.
Update: I wrote this before seeing that Holly Petraeus, wife of current CENTCOM leader General David Petraeus, appeared today with Democratic senators to advocate for consumer protection on behalf of servicemembers. Holly Petraeus works with the Better Business Bureau on consumer issues affecting the military.
-- Tim Fernholz
