Happy Birthday Lehman Failure!
By Consumers Union on Monday, September 14th, 2009
President Obama spoke to Wall Street telling them to expect new rules for finance.
On the eve of the one-year anniversary of the collapse of Lehman Brothers, CU is calling for a Consumer Financial Protection Agency (CFPA) as part of a broader effort to toughen regulatory oversight of the financial industry. The House Financial Services Committee is expected to vote on the CFPA in the coming weeks.
Click here to read our letter to DC.
The Lehman Brothers bankruptcy last September triggered a free fall on Wall Street and worldwide economic crisis. The complex financial instruments that led to the downfall of Lehman Brothers and undermined the stability of the nation’s banks were based on risky home loans that were poorly underwritten and unsuitable for borrowers.
The CFPA would ensure that credit, deposit and payment products and services are being offered in a fair, sustainable and transparent manner. It would create baseline federal consumer protection standards that apply regardless of the nature of the provider and states would remain free to set higher standards.
Billions of taxpayer dollars have gone to bailing out the banks consumers should at least get much needed protection from harmful financial products which will be essential to safeguarding our economy essential to safeguarding our economy. You can help us by joining the fight. Click here to learn more.