The proposed Consumer Financial Protection Agency (CFPA) may be in jeopardy this week. The CFPA, which was a mainstay of the Financial Services Bill passed by the House of Representatives last month, may not make it into the Senate bill, according to reports cited by The New York Times.
President Obama met with Senator Christopher J. Dodd (D-CT), chairman of the Senate Banking Committee, on Tuesday in a one-on-one meeting about the bill, after reports last week suggest that Dodd may be willing to drop the CFPA from the Senate version of the bill in order to win the support of Republicans and centrist Democrats.
A source in the Obama administration was quoted as saying that the President’s position on the necessity of the inclusion of the CFPA in the increasingly complicated bill is “nonnegotiable.” The President believes that it is the portion of the bill most likely to be popular with the public.
Meanwhile, Republicans huddled on Thursday to try to craft their proposal for the Senate version of the bill. Republicans are opposed to the CFPA, which is also opposed by the U.S. Chamber of Commerce and the broader financial industry.
The version of the Financial Services Bill that passed the House of Representatives last month included an amendment giving the CFPA the ability to oversee the reverse mortgage industry to ensure seniors are not exposed to unfair and deceptive practices. It is unclear whether a similar amendment will wind up in the Senate version of the bill.
Write to Reva Minkoff