Financial Services Chairman Spencer Bachus, R-Ala., said the agency will likely be “the most powerful agency that’s ever been created in Washington.” He and other Republicans have complained that Congress doesn’t control the bureau’s budget, that it will be headed by a director and not a bipartisan commission, and that it has strong leeway to decide which financial products it will curb.
“You have a lot of discretion and a lot of power, but I see very little accountability,” Bachus said.
Ultimately, the power of the purse may prove a key factor in the Bureau’s development. The scope of the Bureau’s power will have particular relevance the credit card industry and other lender
.
Hoping to restrict its power, the House voted earlier this year to limit the bureau’s budget to $80 million this year, well below the $143 million Obama wants. The Democratic-run Senate and Obama are unlikely to accept that reduction.
The bureau is chiefly designed to give consumers simplified information about financial products and protect them from unfair practices. Priorities Warren considers important include regulating mortgages, credit cards and non-bank financial companies like mortgage brokers, payday lenders and private providers of student loans.
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