"Harry and Louise" Against Consumer Protection

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The industry backlash against the Obama administration's financial reform plans -- especially the proposed Consumer Financial Protection Agency -- is taking shape. "A coalition of financial trade groups is brainstorming on how to sink the agency," reports Reuters. They claim the agency "will create new costs and red tape while doing little to help consumers." The American Financial Services Association is coordinating opposition to the agency, which will likely include "using advertising and grass-roots political tactics to turn lawmakers against the idea. Last week, public relations firms hatched an idea to mimic 'Harry and Louise' ads that helped sink President Bill Clinton's health care plan in the early 90s." While industry opposition to the Consumer Financial Protection Agency was expected, existing U.S. regulators "are gearing up campaigns to preserve their consumer protection roles," reports Reuters. The Federal Reserve, Federal Deposit Insurance Corporation (FDIC) and Office of the Comptroller of the Currency are concerned the proposed agency may "step on their toes." Yet the agencies are staying positive, mindful that they must "avoid looking as though they are allying themselves with the banks they regulate."