Senate Banking Committee Chairman Christopher J. Dodd (D-Conn.) is nearing a deal with Sen. Bob Corker (R.-Tenn.) to propose the creation of a consumer protection authority housed inside the Federal Reserve, according to three sources familiar with the negotiations.
This would be whatcha call a major breakthrough in negotiations.
Originally, Chris Dodd and Bob Corker wanted an independent agency, one that could write, as well as enforce, rules that would protect consumers.
This is the compromise:
The proposed regulator would be appointed by the president, with a dedicated source of funding and the power to write rules, but enforcement of those rules would remain the responsibility of banking regulators.