October 22, 2009

WASHINGTON - During consideration of H.R. 3126, legislation to establish a Consumer Financial Protection Agency (CFPA), Rep. Alan Grayson (D-FL) offered an amendment that would require the CFPA Director to conduct an annual financial autopsy of bankruptcies and foreclosures.  The Grayson amendment would provide another mechanism for the Director to create "plain vanilla" products by empowering  the CFPA Director to eliminate financial products if the agency determines a financial product "appeared to have caused a substantial number of bankruptcies and foreclosures."

The Grayson amendment would ensure that the new agency will use its power to stifle innovative products.

A request from Grayson to withdraw the recorded vote on his amendment was objected to by Ranking Member Spencer Bachus and others, forcing a vote on the amendment.  This led 37 Democrats on the Committee, including Grayson, to vote "present" on the amendment.  It was defeated by a vote of 2-29.