Instead, the administration is willing to consider housing a consumer regulation function inside the Treasury Department or perhaps another agency rather than create a new federal bureaucracy.
The compromise comes in an effort to break some of the stalemates that have stalled Obama’s legislative initiatives. However, the president still wants a regulator free from political pressure to protect consumers from abuses by financial institutions on mortgages, credits cards and other services.
Even with the compromise, Obama’s proposals face a tough road in both the House and Senate. Democratic and Republican leaders are reluctant to tighten control on an industry that pumps so many campaign dollars into their political war chests and both parties want to leave regulations to the same federal agencies that looked the other way as the economy headed into a nose dive three years ago.