Sheila Bair: The Consumer Financial Protection Agency Will NOT Hurt Community Banks

The AP reports:

The head of the Federal Deposit Insurance Corp. is pitching again for a new agency for consumer financial protection, now a key sticking point in Senate talks in legislation to overhaul the finance system.

FDIC Chairman Sheila Bair said Monday a new agency was needed and she believes it “would help community banks, not hurt them.”

The banking industry overall opposes creation of a new agency, which would enforce rules and police the fine print of credit cards, mortgages and other financial transactions. Bair said she was hopeful a bipartisan agreement can be reached in Congress on the issue.

But if Bair is right, then why are the community banks lobbying so hard against the CFPA? Or does she think she knows better than the bankers what will hurt their bottom line?

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