According to reports on February 2, 2010, Bank of America will not oppose President Obama’s plan to create the Consumer Financial Protection Agency.  B of A says that while not endorsing the agency, they do agree with the policy direction.  B of A spokesman James Mahoney says that the bank has made it clear to various organizations they are apart of that they will not lobby against the agency.  This stance puts Bank of America at odds with rival bankers who have spent millions of dollars lobbying against the agency. The bank does oppose proposals that would allow state regulators to overrule federal guideline.

President Obama calls the agency a “non-negotiable” part of his regulatory reform effort.  The House of Representatives has already passed a bill to overhaul bank regulations to protect consumers.  Senate Banking Committee Chairman Christopher Dodd (D. Conn) and ranking Republican Senator Richard Shelby (R. AL) are in discussions over alternatives to the House bill.  The proposed agency has the support of more than 200 consumer groups.

Not surprisingly, the U.S. Chamber of Commerce and American Bankers Association have organized television campaigns and encouraged the writing of letters to congressmen against the formation of the agency.  Rival bank, JPMorgan Chase & Co, who like B of A was a beneficiary of the government bailout of troubled financial institutions, has stated that they are not in favor of the formation of a new agency to regulate risky or abusive banking practices. 

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