Manzullo Fumes Against Tougher Consumer Protection Laws

The House Financial Services Committee held a hearing Wednesday to discuss how best to overhaul the nation's financial regulations, including expanding consumer protections.

Committee member Rep. Don Manzullo (R-Ill.) didn't play nice with all of his guests.

Ed Mierzwinski, program director of the U.S. Public Interest Research Group, testified in favor of proposed regulations:

"I would just say briefly that consumer groups think the new agency would cut through the red tape. There are twenty or so consumer laws. Currently there are seven -- or nine, depending on how you count them -- agencies that have authority over various parts of the law."

"But that's -- why don't you just eliminate all that crap?" responded a flustered Manzullo.

Mierzwinski pointed out that the Fed was failing to protect consumers, and suggested shifting the role of consumer protection from the Fed to a new agency. Mierzwinski's argument that "monetary policy conflicts with consumer protection," earned a sharp rebuke from Manzullo: "not if it's done correctly."

Manzullo had similar exchanges with Elizabeth Warren, chairman of the Congressional Oversight Panel that monitors how TARP money is spent, and Ellen Seidman, senior fellow at the New America Foundation.

Warren sided with Mierzwinski, saying that the Fed "want[s] to do monetary policy" and is "not interested in consumer protection." Again, Manzullo interrupted, saying "Yes they are. Mr. Bernanke is interested in consumer protection." Warren responded, "Then why hasn't he done anything?" Manzullo dismissed her remark.

The proposed reforms come after widely accepted failures in existing legislation to protect consumers from dodgy financial practices. But Manzullo deemed the financial collapse a result of over-regulation, not under-regulation.

When Seidman suggested that responsibility for consumer protection should be "moved over to [a] new entity," Manzullo responded: "Yeah, more federal jobs."

After Manzullo's aggressive line of questioning, Subcommittee Chairman Luis Gutierrez (D-Ill.) reminded the committee to be nice to its guests.

"We did invite these people to come and address us and we might want to treat them as such. ... They are our guests here in the People's house, and we might want to treat them at least with some modicum of respect for their answers."

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Comments

[babyboomerorig]

Oooohhhh..­....Manzul­o messed with Elizabeth Warren....wrong target, Manzulo.

She'll eat you alive. The woman is the only person in this country who can explain things to those of us without a PhD in Economics and make sense. She'll hold your feet to the fire until you're a blubbering i.diot.

The woman's great.

[keepemhonest]

"Manzullo deemed the financial collapse a result of over-regulation, not under-regulation."

Is that so Mr. Manzullo.

[solarian]

repubs against americans again

[Adartist777]

It appears the Republicans are so entrenched with banking and Wall Street interests that they have to defend the status quo. Clearly, there's a conflict with the Fed in regards to consumer protection. The job isn't getting done. I've never seen such self destructive behavior from a political party in my life.

[TwoSpirits]

Entrenched to the point of ignoring what their own constituents are calling for.

Self destructive indeed....Pass the popcorn please.

[greenie 61]

Two words: "Illinois Republican"

'nuff said

[jinxed]

One word: "Republican"

More than 'nuff said

[Rogan]

traitors, all of them. Their loyalty is to corporations, and their own income.

[Coltrane1234]

How do these people who know nothing but seem to think they know everything elected? All it takes is a little intellectual curiosity to see what cause the crisis and then how best to solve it. He hasn't taken those steps and hopefully someone will boot him in the a $$

[jinxed]

The problem is he would have to admit that everything the Repubs stand for are the reason everything tanked.

[dwillisno1]

You must all understand that for Republicans, there is a temporary moratorium on moralistic pronouncements about adultery and sex scandals, so the game plan is concentrate on bad mouthing Gov bureaucrats.

[sonoffestus]

Someone needs to remind these a$$es who they work for.

[missmack]

Here’s another Repug that needs to get his worthless a$$ out of Washington. I hope his constituents remember this the next time they see his name on a ballot!!

[HonorJusticeTruth]

I'm willing to put politics under the Consumer Protection agency. There sure do seem to be a lot of defective ones out there.

[PuzzledinPeoria]

It's the Amercan Way to screw consumers!

[chriss0114]

that should be "$crew con$umer$!"

[sjaz]

He should be ashamed of himself.

[lvdragonlady]

If we could remove him, some of the junk would be gone off the top.

[DawnK]

He obviously doesn't realize that voters are consumers.

[PWM]

GOP: Greedy Old Party