You probably know that the much discussed consumer protection agency idea is impeding progress on a host of Wall Street reform methods. Aiming to get things moving in the Senate, this idea has cropped up: Housing such an agency within the Fed but giving it enough autonomy to write the appropriate rules in a wide array of service areas. The idea seems to be a compromise from the administration's view that such an agency should be independent.

There's a lot of skepticism and some confusion. The proposal calls for a division to be set up at the Fed that would be an appointee, presumably independent of the Fed chairman. The idea might fly if it were the case that the new entity would be able to draw on some real expertise at the Fed, but then you would have to ask what expertise the Fed can really bring to consumer protection. It just hasn't been the focus of the organization. Over in the House, the idea has raised some cackles. Barney Frank calls it a joke, according to Bloomberg/Business Week. So it would be appear to be dead on arrival, but you never know. 

For more:
- here's the AP article 

Related Articles:
What to do about overdraft fees?
How would the new risk council work?
Big fight looming over superagency