KPLU Local News
(2010-03-01)
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Attorney General Rob McKenna
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President Obama proposed the creation of an independent government watchdog for financial consumers last year - to prevent the kinds of sub-prime lending that were at the root of the financial crisis. In August, 24 attorneys general sent a letter to Congress backing the idea. Washington's Republican AG Rob McKenna was not among them.
"Unfortunately in Washington DC, the tendency is to never eliminate an agency, but rather to create a new agency, which inevitably has some sort of overlapping or redundant function with an existing organization."
McKenna thinks it would be more effective to streamline and consolidate existing authority, so there's clearer responsibility for enforcement. He says the federal trade commission is already the nation's lead protector of consumers. He thinks it needs to get stronger. At the same time, he says the agencies already regulating banks need to do their jobs better.
The debate is shaping up along party lines. Some are now calling for a compromise: the creation of a new consumer protection unit within a standing agency, such as the Treasury Department.
For more information: State AGs Push for CFPA - U.S. Consumer Financial Protection Agency
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