March, 09, 2010

If there were any question that the stakes are high for financial reform, consider this: Even the Defense Department is getting into the fight.Pentagon brass want a new consumer watchdog agency to regulate auto dealers so they don’t rip off troops with predatory sales and shady financing deals. Democrats are hoping it’ll be hard for Republicans to oppose something Pentagon leaders want, at a time when troops are in harm’s way.

And there’s more: Payday lenders, check-cashing outfits and rent-to-own stores operate, for all practical purposes, free from federal regulation — and President Barack Obama wants to change that with a consumer agency that spans the world of finance from high to low.The business community and some influential Republicans are fighting back. The U.S. Chamber of Commerce has launched an ad campaign focused on limiting the reach of any new consumer regulatory agency, saying that a far-reaching entity would wreak havoc on a lot of mom and pop businesses that had nothing to do with the financial meltdown in the first place.

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