Associated Press | Senate Democrats have rejected a Republican
consumer protection plan that would have diluted a central element of
President Barack Obama’s financial regulation package. Democrats and
the president argued that the GOP proposal would have “gutted” consumer
protections. The vote was 61-38.

The Democrats’ Senate bill would create an independent consumer bureau within the Federal Reserve to police lending and other customer transactions with financial institutions.

Republicans said the Democratic bill overreached and would give a powerful consumer agency too big a voice in banking affairs. Their proposal created a consumer division within the Federal Deposit Insurance Corp., which would have to approve consumer protection regulations.