US Congress Moves to Protect Financial Consumers

A committee of the U.S. congress has voted to create a new federal agency to regulate the financial industry.

The House Financial Services Committee voted mostly along party lines (39-29) Thursday to establish the Consumer Financial Protection Agency.

This is a step in congressional efforts to enact President Barack Obama's plan to improve regulation in the wake of the economic crisis.

Supporters say the agency would protect consumers from lenders who mislead customers, banks that charge large fees for overdrafts, or raise interest rates in unreasonable ways.

Opponents say the agency would be unwarranted government intrusion in business.

The next step for the bill would be a vote before the full House.

Some information for this report was provided by AP and Reuters.