Connecticut Attorney General's Office

Press Release

Attorney General Reiterates Strong Support For Consumer Financial Protection Agency

January 15, 2010

"As I have done repeatedly in the past, I reiterate my strong support for a federal consumer financial protection agency -- vital to shielding consumers from financial industry abuses that brought the nation to the brink of economic disaster.

"I will continue to fight for this powerful watchdog to stop excesses and abuses in our financial system that exploit and harm consumers. Failure so far of Federal Reserve officials to agree to roll back unconscionable interest rate hikes, fee increases and other charges imposed by credit card companies -- as I have urged -- demonstrates the need for a consumer financial protection agency.

"As I said in my congressional testimony last July, the new agency is a necessary and appropriate response to the exploding complexity, scope and scale of new financial instruments and markets -- and exponentially increasing impact on ordinary citizens. Ever more slick and sophisticated marketing -- often misleading and deceptive -- cannot be battled successfully by states alone, or the existing federal agencies.

"The point is to assure that consumers fully understand the financial realities and consequences of financial obligations, credit cards or loans, they are considering before they make commitments. This agency's purpose is to assure people have good information so they can make good financial decisions.

"The new agency -- a consumer financial guardian -- promises to be a powerful watchdog and protector, and a partner of state attorneys general in fighting for our citizens. Together with extended state consumer protection authority, the agency marks a giant step toward restoring an historic federal-state alliance in combating financial fraud and abuse.

"The national financial meltdown was directly due to massive federal law enforcement failure -- lax or dysfunctional federal oversight and scrutiny of increasingly arcane, complex, opaque, risky practices and products. Federal law placed all enforcement and regulatory authority in an array of federal agencies that were inept, underfunded, complacent or complicit. A consumer financial protection agency's primary mission will be to safeguard consumers rather than the safety and soundness of financial institutions, which can be overseen by other existing agencies."