The Wall Street Reform amendment that Chris Bowers calls the "most dangerous" amendment is getting opposition from the White House. This amendment would basically pre-empt any state consumer protection regulations.
Diana Farrell, deputy director of the National Economic Council, said the administration opposes amendments – including one backed by Sen. Tom Carper (D-Del.) – that would restrict state attorneys general.
"We intend to fight those and oppose those," Farrell said on a conference call with the Iowa and Connecticut attorneys general.
"We just don’t think those are welcome additions to the bill," Farrell said, referring to legislation shepherded by Senate Banking Committee Chairman Chris Dodd (D-Conn.). "We have a very strong hope that the senators will make the right choice."
Carper is the main sponsor of an amendment that is backed by 10 other centrist Democrats and Republicans. The question of how much power the federal government should have to preempt state officials is at the heart of efforts to set up a new consumer financial protection regulator.
Ah, states rights unless states rights interferes with Wall Street profits. That the banksters take priority over consumers for any Democrat is a travesty. Since Dodd is in the process of picking and choosing the amendments that will be heard, and certain progressive amendments don't appear to be making the schedule, this one should be scuttled.