A coalition of 24 state attorneys general sent a letter to key financial services lawmakers endorsing the Obama administration's proposed Consumer Financial Protection Agency.
In the letter sent Monday to leaders of the House Financial Services Committee and the Senate Banking Committee, the attorneys general specifically endorsed the expanded role that the proposal would grant states. Under the plan, states would be allowed to write rules tougher than the consumer protection agency's and to enforce both state and federal consumer protection laws against national banks.
"Like the existing federal regulators, the new agency will never have enough resources to comprehensively reform the financial marketplace across the entire nation," the attorneys general wrote. "Allowing the states to participate in enforcement of federal rules will maximize government resources, improve accountability, fill unexpected gaps and encourage innovation in approaches to emerging fraudulent practices."
The attorneys general urged the lawmakers to retain the provision granting the states increased power. "Because of our local presence, attorneys general are well positioned to identify new trends, and we have long served an important role in finding innovative responses and solutions to these practices."
