Consumer advocate and former presidential candidate Ralph Nader appeared on Yahoo Tech Ticker today to discuss President Obama's plan for a consumer financial protection agency.
In the segment, Nader discusses the importance of a new agency -- and took a serious shot at the Federal Reserve:
"The Federal Reserve... doesn't even know how to spell consumer protection. The other agencies are squabbling over jurisdiction. What this new agency does is says look, for consumer protection... at the point of sale, at the point of merchandising, at the point of the fine print, we're gonna have a strong, lean consumer protection agency."
Nader also discussed how the regulators who were actually supposed to prevent the financial crisis from happening didn't hold up their end of the bargain: "Existing bank regulatory agencies failed colossally. The Federal Reserve in 1994 was given authority to protect consumers, and they never did."
Here's more from Nader on the consumer agency:
"It's basically putting a federal cop on fraudulent mortgage, consumer credit cards and other shenanigans that the financial industry has been getting away with, and demonstrating that fraud and crime pays -- as long as it comes from corporate misbehavior."
Nader also provides his opinion on who should run the new body. "I hope Elizabeth Warren is the first chief. If she is... I am very confident that it would work and straighten out some of these shenanigans."
Check out Yahoo Tech Ticker here.