Blogs » Politcs Plus » Who's afraid of Elizabeth Warren?


Elizabeth Warren is a Harvard law professor who is currently serving as Assistant to the President and Special Adviser to the Secretary of the Treasury on the Consumer Financial Protection Bureau. She used to be the chair of the Congressional Oversight Panel created to watch over the Troubled Asset Relief Program(TARP), where she has constantly locked horns with people like the treasury secretary, Timothy Geithner,members of congress and others like Goldman Sachs CEOs from Wall Street.....After the Dodd-Frank Wall Street Reform and Consumer Protection Act was signed into law by president Obama, she was asked her to head the new Consumer Protection Agency but the republicans have indicated that they will block her nomination, because she is too controversial.

I have yet to find any credible evidence that proves Elizabeth Warren is too controversial, unless it's from those who think Wall Street doesn't need any reform. I did find some statements from some leading republicans like senators Richard Shelby and Spencer Bachus of Alabama..... Sen. Richard Shelby, top Republican on the Senate Banking Committee said “The bureau, as currently structured, lacks any semblance of the checks and balances inherent in the Constitution,” and then continued to qualify his statement by saying “Everyone supports consumer protection, but we should never entrust a single person with this much power and public money.” Senator Shelby's colleague, Rep. Spencer Bachus (R-Ala.), who chairs the House Financial Services Committee, said "a recess appointment would be inappropriate and is inconsistent with the Constitution” because the director’s job is “a position that never before existed. Thus, there is no vacancy to fill.” Bachus continued his party’s central argument against the agency: that its blueprint gives its director “the singular power to spend hundreds of millions of dollars outside the congressional appropriations process” with very little public oversight..Those comments were the only reasons I could find for opposing Elizabeth Warren. I think it's all about the Dodd-Frank law, which created a strong agency that will not only educate the public about financial products—but it has broad powers regulating those products. The GOP can't go on the record opposing measures to rein in predatory lending practices, so they do the next best thing.

The Consumer Protection Agency will change our financial regulatory system from top to bottom and all across the financial spectrum. The new agency will call for more simplification of consumer loan documents, consolidating regulatory agencies, eliminating the national thrift charter and will create a new oversight council to evaluate systemic risk. The agency is designed to guard consumers against risky mortgages, misleading credit-card agreements and unregulated payday loans.

Elizabeth Warren is the best of all the candidates to head this agency, so it's very possible that the Obama Administration will make her a recess appointment sometime this summer. If that happens; look out Wall Street because the admirers of Elizabeth Warren affectionately call her “the new sheriff in town."