Last month, when bipartisan financial reform negotiations where breaking down in the Senate Banking Committee, Sen. Bob Corker [R, TN] stepped up from out of nowhere and volunteered to take over for Ranking Member Sen. Richard Shelby [R, AL] on representing the Republicans at the negotiating table. By all accounts, he has in fact managed to keep the bipartisan negotiations alive. He and Sen. Chris Dodd [D, CT] are reportedly ready to introduce their bill to the full Senate imminently.
The New York Times reported yesterday that one of the concessions Corker has won from Dodd is a special exemption in the proposed Consumer Financial Protection Agency's (CFPA) enforcement powers for payday lenders and other nonbank credit dealers. These are generally the most predatory of lenders, commonly charging interest rates as high as 400 percent. Corker's exemption would allow the CFPA to create rules to regulate the payday loan industry, but it would't give the agency any power to enforce the rules like it could for banks and mortgage dealers.
Talking Points Memo yesterday ran a profile W. Alan Jones, Bob Corker's payday loan shark/multi-millionaire friend and political supporter, and how he may have influenced Corker's decision to fight for the regulatory exemption for his industry:Read Full Article