Released: February 03, 2010

Consumer watchdog agency may get lost in shuffle

Source: David Lazarus, L.A.Times (Free Registration)

President Obama’s focus, we’re now told, is on jobs, jobs, jobs. That’s nifty, but it doesn’t bode well for other big-ticket policy goals, such as creation of a Consumer Financial Protection Agency to safeguard us from abusive bank practices. That idea, which Obama championed and leading Democratic lawmakers embraced, is now expected to be a long shot thanks to ferocious opposition by the banking industry, which says no additional regulatory oversight is needed.

No? Here’s an economic statistic that suggests otherwise:

The number of credit card solicitations mailed to consumers rose during the last three months of 2009 for the first time in three years, according to Mintel Comperemedia, a Chicago market-research firm. Total come-ons from credit card issuers jumped 47% from the previous three-month period, Mintel found—a sign that banks believe the economy is recovering and that the time is ripe to start wooing consumers again with offers of easy credit.

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