Consumer Protection Priority for New Agency
It appears that the establishment of the new consumer protection agency may to some extent be acting as a stimulus to consumer activity. There has been mixed response to speculation that Harvard professor Elizabeth Warren will be appointed to head the fledgling Consumer Financial Bureau, but it appears that support for this move is growing. It was reportedly Professor Warren’s idea, way back in 2007, to set up a consumer protection agency in the first place, and having served in a position of oversight in the US banking bailout strategy, as well as being a consumer advocate and bankruptcy expert, she certainly fits the bill for this position. The other serious contender for this post is Michael Barr, currently Treasury Department Assistant Secretary. Both of these candidates are serious about bringing about solid, workable changes to the way financial institutions and loan agencies interact with consumers, with consumer welfare being of paramount importance – which makes a whole lot of sense when considering that consumer spending is believed to account for up to 70 percent of US economic activity and is crucial to economic recovery.