Source: Jim Puzzanghera, L.A.Times ( Free Registration )

There is broad agreement in Congress that government regulators failed to protect Americans from subprime mortgages and other risky credit products, but Democrats and Republicans split sharply Wednesday over creating a consumer watchdog agency to police the financial industry.

A Consumer Financial Products Agency is one of the pillars of the Obama administration’s overhaul of financial regulations to avoid the unfettered wheeling and dealing that precipitated the economic crisis that has gripped the nation for the last 18 months. But like another key component—expanding the power of the Federal Reserve to regulate large financial institutions—the proposal is drawing fire on Capitol Hill, demonstrating the difficulty the administration faces in pushing its complex plan into law.
split over new consumer agency

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