Monday, July 13, 2009

AEI Criticizes Proposal for Consumer Financial Protection Agency

In a Washington Post op-ed, Peter J. Wallison of the American Enterprise Institute says if the Obama Administration's proposal for a Consumer Financial Protection Agency (CFPA) "is adopted, many consumers will be told that they cannot have particular products or services because they are not sophisticated, educated or perhaps intelligent enough to understand what they have been offered." The Administration's plan "would allow the educated and sophisticated elites to have access to whatever financial services they want but limit the range of products available to ordinary Americans. This unprecedented result comes about because, under the proposed legislation, every provider of a financial service (a term that includes organizations as varied as banks, check-cashing services, leasing companies and payment services) is required to offer a 'standard' product or service -- to be defined and approved by the proposed agency -- that will be simple and entail 'lower risks' for consumers."

Ignorance is bliss.

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