President Obama Announces Sweeping Regulatory Reform

June 19, 2009

By Mike Wayman

In an effort to protect American Consumers from future financial collapse, the President has recently announced regulatory reform that seeks to protect consumers from the abuses experienced in the last ten years. Most of the reform centers on the mortgage industry.

The reform includes the creation of an independent agency to regulate consumer credit of all forms designed to protect the consumer from the abuse of lenders of all types. All banks and non-banking institutions that offer credit will fall under the regulatory power of the new agency.

While consumer groups, in general, are very pleased with the new announcement, lobbyists from the banking and financial services sectors are up in arms. While it’s understandable that bankers and lenders would be upset by further regulation, consumer groups argue that the abuses of the last ten years call for more consumer protection.

In my mind the real question is whether or not expanding government to protect individuals from corporations will actually make a meaningful difference. When it comes to sweeping regulatory change, many people will make off the cuff remarks about their thoughts, feelings and opinions regarding the expansion of government. Personally, I have a more “wait and see” attitude. Let’s see what this new government agency is able to do first and then pass judgment later.