Senate Democratic leaders defeated a Republican effort to curb the powers of a new consumer agency and struck a compromise on a watered-down version of a bill that would keep Federal Reserve activities transparent. President Barack Obama called the new consumer protection agency proposal, which was voted down 38-61, “worse than the status quo,” while the White House, Treasury, and Federal Reserve lobbied for a “comprehensive” audit of the Fed’s activities. The parties instead agreed on a "one-time audit" on emergency lending. Still, head-butting continues. Republicans argue that the Democrats' plan would go too far and would allow the government to regulate any small business extending credit to customers. Democrats, however, attest that their proposal will be applicable only to firms where extending credit is a significant portion of their business.
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