WASHINGTON — The drive to create a new consumer protection agency — a key component of the Obama administration's regulatory restructuring plan — will get its first test in a House hearing this week and has already sparked fierce debate.

The banking industry and its federal regulators oppose the plan, which would strip current agencies of their power to write and enforce rules related to consumer protection. They argue that safety and soundness and consumer protection are closely related and that separating them would be needlessly burdensome and expensive and could even threaten the industry's health.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.