To prevent future rerun of the foreclosure crisis steps are being taken by Congress to regulate bank

There is a strong difference of opinion raging as to whether more regulations should be clamped down on banks to prevent another rerun of the foreclosure crisis. While some like Tom Evans of Wall think this is the step in the right direction there are others who differ. Donna Ferri of Ocean Township said, "I just think the government has gotten too big and everybody has to (look at) what they are making and live accordingly. The government having its hand in everything is kind of scary to me."
From the prevailing mood it seems Congress is poised to make the administration become more heavily involved in the matter.

Last December a financial reform bill as passed by the House of Representatives. A committee of the Senate has given the green signal to a similar one – the latter being a proposal of Senator Christopher Dodd (Democrat/Connecticut). The debate is about to take off with the full Senate participating.

The proposal that is generating the most heat is the one that will have the greatest impact on the ordinary Americans. The government is set to establish the Consumer Financial Protection Agency. It would either be an independent one or be included in the framework of the Federal Reserve. It would assume the responsibilities regarding consumer protection that is now under the coverage of seven agencies whose task is to regulate the banks. It would make inquiries into abuses and have the power to put brakes on them without waiting for the Congress to do so.

Those who are advocating reform think that by taking this step the consumers would get a strong say. Hitherto they sat in the back seat as banks played around with profits. They also argued that the agency would be able to assist the consumers in a better way by enabling them to understand the products that they inked. If such an agency had been created earlier the sub-prime mortgages would have been ticked off long ago the present crisis would never have taken place.

Lauren Weiner of Americans for Financial Reform (consumer group based in Washington) said, "The problem has been there’s seven agencies in charge of (consumer protection), and it was none of their first priorities. It was their second or third duty. Everyone thought everyone else was doing it. It was overlooked because they had something else on their plate. This is the best way for consumers to be protected. We saw how they fell through the cracks."
The banking lobby is fighting tooth and nail to prevent the setting up of this new agency.

Jessica Alberton, has been working on ForeclosureRepos.com studying the foreclosures market, helping buyers on the finer points of bank foreclosures.