Why Reward Failure?

I'm with Barney Frank on this one. Why, why, why would Senator Dodd want to give the Fed the CFPA? The Fed failed on this already, and Fed Chair Bernanke had 30 Senators vote against his getting a 2nd stint. That's a good sign that something stinks over there.

“I do not support housing the Consumer Financial Protection Agency in the Federal Reserve. I continue to vigorously support the House-passed bill that establishes an independent agency with strong rule-writing authority and enforcement powers to implement consumer protections. I could, if necessary, support housing this important function in the Treasury Department, provided that the entity has sufficient independence and broad regulatory scope to accomplish the mission of protecting consumers.

“My main objection to housing this critical function in the Federal Reserve has been the central bank’s historical failure to implement consumer protection as a central part of its mission and role.”