Associated Press
WASHINGTON -- A federal agency to regulate home loans, credit cards, savings accounts and other financial services won the approval of a House committee on Thursday in spite of loud complaints from banks and businesses.
President Obama, who had proposed the agency to Congress, applauded the 39-29 vote, which fell mostly along party lines.
This step "sends an important signal to the American people that we will not stand by and allow big financial firms and their lobbyists to mobilize against change," Obama said in a statement.
The House Financial Services Committee also approved legislation that would impose new rules for credit cards by Dec. 1, moving up the date from February. Democrats said changing the date was necessary because lenders were using the grace period to hike interest rates.
The proposed Consumer Financial Protection Agency is a cornerstone to Obama's broader plan to clamp down on Wall Street and prevent much of the reckless lending that contributed to last year's near-collapse of the market.
The bill exempted general retailers, auto dealers, title insurers, accountants, lawyers and others. Lawmakers said businesses would only face scrutiny if they offer financial services, such as a car loan, but that the agency would not monitor every financial transaction, including store layaway plans.
