Congresswoman Waters Applauds Fed Decision to Table Proposed Regulations Harmful to Consumers
Congresswoman Maxine Waters (D-Calif.) issued the following statement today:
"I was pleased to learn today that the Federal Reserve has decided to table two proposed regulations contained within FRB Docket No. R-1390 that would have been extremely harmful to American consumers.
"While these rules were being considered, I wrote to Chairman Bernanke to strongly advise that he withdraw these proposals. Based on the many hearings I conducted in my Subcommittee on Housing and Community Opportunity during the 111th Congress, I think the Chairman made the right decision. In the days leading up to the economic meltdown in 2008, we saw a steady erosion of consumer protections and a failure on the part of our regulators to act on behalf of American consumers. I am pleased that Chairman Bernanke is working to ensure that we do not repeat those mistakes. By rescinding these proposed rules, the Fed is ensuring that homeowners continue to have a major defense against foreclosure and that elderly homeowners are protected from unscrupulous cross-selling. At a time when our housing market is in crisis, we need more protections for homeowners; not less.
"Again, I applaud Chairman Bernanke for withdrawing these proposals, and I look forward to working with him, our other regulators, and the new Consumer Financial Protection Bureau, to ensure that financial products are sold in a manner that encourages transparency, honesty and open competition."