Brighter view of financial system by Silvia Szarkova

Congress wants to found another institution that would in addition control and protect the financial system against financial crisis like the current one. But in fact, even when it means that it would protect your pocket, there is a planty of fine print that will limit the new agency´s reach. The creation of new Consumer Financial Protection Agency was on the plan on Thursday. Its task should be the regulating and controlling on the most popular financial products- mortgages, credit cards and saving accounts. The creation of the new agency is fully according to the plans of President Barack Obama. He planned to make the rules about the financial system tighter- gov! erning the Wall Street and other financial institutions are the top priorities of him. The Protection Agency should be approved by the House Financial Services Committee. According to Democrats, the Agency would help to see across different businesses to stop and prevent fraund and another agressive and illegal practices that would potentially lead to another financial crisis or to destabilizing it in these sensitive times. The previous regulators did not monitor the nonbank institutions like mortgage brokers- this fact is considered to be the main factor in agrresive lending that led to the housing market crash. Of course, under the pressure of industry, the Financial Services Committee has made some exeptions from the oversight of the Agency. The exeptions are for retailers, real estate brokers, lawyers, cable companies and accountants. Rep. Barney Frank says, that the exemptions have been maid to make sure that only financial products are monitored, not every financi! al step made by the American public.

related story (sg x15687): http://news.yahoo.com/s/ap/20091022/ap_on_go_co/us_financial...

by Silvia Szarkova for PocketNews (http://pocketnews.tv)

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