If there is anything that you can depend on, it is that whatever bill goes through Congress, it will either be killed, or weakened significantly.

Well, it appears that the reform of financial regulation is actually getting better and stronger in the Senate, which has added:

• New protections for home buyers from conflicts of interest and deceptive loan practices.
• Banning liar loan home mortgages.
• A requirement that ratings agencies be selected by a government clearinghouse, which would mean that they would no longer compete by offering leniency in their ratings.
• Require that all federal agencies use their own ratings systems, rather than using the ratings agencies.

Seriously, I think that people inside the DC Beltway are beginning to realize just how unpopular the finance industry is, and the Senate is moving this way, because it wasn’t quite so obvious when the House passed the bill.

That being said, there were still things that show that Washington, DC is still the same as it ever was, specifically that they are looking to create a carve out for an industry that is notorious for cheating consumers, car dealers:

A measure under consideration in the Senate would shield auto dealers from a package of proposed financial rules aimed at protecting consumers.

Currently auto dealers are regulated by a host of state and federal consumer protection rules that prohibit practices such as “bait and switch” lending and loans packed with undisclosed extras such as extended warranties.

This is hardly surprising.

Car dealers are, as a whole, perceived by the public as an unsavory and dishonest lot, and so they have have consciously inserted themselves into government and elections as much as is possible, spreading largess, and making them patrons of politicians from dog catcher to Senator.

To his credit, and my surprise, Barack Obama is against exempting car dealers from the consumer financial protection agency.