Bank of America (NYSE: BAC) CEO Brian Moynihan may not oppose the creation of a new federal consumer protection agency, according to a new report from the Wall Street Journal.
As part of the Obama administration’s overhaul of financial regulations, a new agency would be created to oversee the regulations and practices for financial products marketed to consumers such as credit cards. The proposed agency has received significant criticism from various business groups, but Moynihan has indicated that he may not oppose a new federal regulator.
The WSJ said that, “Mr. Moynihan’s only substantial concern with creation of a new consumer-protection agency, according to people familiar with his remarks, is that the White House’s demand for large banks to abide by federal and state laws would result in a logistical nightmare of more than 50 sets of rules.”
Moynihan’s new found willingness to forgo his opposition to the consumer financial protection agency is a departure from the banking industry’s advocacy groups, including the U.S. Chamber of Commerce, the American Financial Services Association and the American Bankers Association. These organizations say that the CFPA would make the credit process more difficult and result in higher costs for consumers.
