Warren to nab powerful committee seat? According to several Senate sources, Senator-elect and populist hero Elizabeth Warren has a good chance of getting a seat on the powerful Senate Banking Committee. This is a logical fit for Warren, architect of the Consumer Financial Protection Bureau, and would give her great power in her efforts to curb deceptive and unscrupulous practices on the part of financial institutions. “[G]iven her prominent work on those issues, she would certainly have a very good shot” at getting a spot on the committee, an aide tells Reuters. Having Warren on Banking is essentially the Republicans’ worst nightmare, but it’s worth noting that it’s a nightmare entirely of their own short-sited construction. source
The first big enforcement action by the Consumer Financial Protection Bureau, conceived of and originally led by Elizabeth Warren, is netting $210 million from Capital One Financial Corp. for deceptive marketing of credit card “add-on” products. The settlement will “provide between $140 million and $150 million in restitution to 2 million customers.” The remaining $60 million is penalties, $25 million to the CFPB and $35 million and pay an additional $60 million in penalties—$25 million to the CFPB and $35 million to Office of the Comptroller of the Currency, the primary regulator of banks.
This puts all the credit card companies on notice. Gouging customers with deceptive practices will no longer be tolerated. We’ve got Elizabeth Warren to thank for that. It was her doggedness that kept the idea of the CFPB alive during heated and difficult Dodd-Frank negotiations. And it was Elizabeth Warren who got the Bureau off the ground while Republicans were obstructing the appointment of a permanent director.
Elizabeth Warren, the Harvard law professor who has organized the new Consumer Financial Protection Bureau, will step down from her administration advisor position Monday and be replaced as de facto acting director by a top aide, the Treasury Department announced.
The Consumer Financial Protection Bureau formally opened for business Thursday, but 44 Senate Republicans have promised to block Cordray’s confirmation unless the White House agrees to major changes to the bureau that would weaken its power. The House approved those changes last week, including replacing the single director with a five-member bipartisan commission, but the White House strongly opposes the legislation.
Today the Consumer Financial Protection Bureau is open for business and despite its main creator, Elizabeth Warren, prevented from heading it, the Bureau still enjoys a 74% support from Americans. President Obama appointed Ohio Attorney General, Richard Cordray amid threats that Senate Republicans would not approve anyone to head the Bureau, lest their demands be met. However, a new poll from Center For Responsible Lending (pdf) shows that across partisan lines, Americans support financial reform in some form and want the consumer protection that the CFPB specifically offers. Also today, the House is scheduled to vote on a GOP backed measure that would lessen the influence of the Bureau by replacing a director with a board of directors.
Some key findings from the Center For Responsible Lending poll:
Likely voters, including majorities of Independents, Democrats, and Republicans, favor the 2010 Dodd-Frank Wall Street Reform law by a 5 to 1 margin (71% vs. 14%).
Presented with information about challenges in Congress to the law, almost two-thirds (63%) believe that policymakers should allow the law to be fully implemented.
Three-quarters (74%) of voters support the existence of a single entity with the mission of protecting consumers from deceptive practices.
Voters also voice overwhelming support for the following consumer protection functions of the Consumer Finance Protection Bureau: Requiring clearer explanations of rates and fees, restricting lenders from offering loans with risky or confusing features, and banning incentives to mortgage brokers to put homeowners into higher rate mortgages than they qualify for.
Three-quarters (73%) of voters want to see federal oversight of financial companies that previously lacked national oversight, including mortgage brokers, payday lenders, and companies offering pre-paid debit cards.
Read the report here.
President Obama has surrendered the fight to place Elizabeth Warren at the head of the newly created Consumer Financial Protection Bureau. Instead, he’s nominated former Ohio Attorney General Richard Cordray, a Democrat that made a name for himself suing big banks. Attorney General Cordray was…
I count myself as one of Elizabeth Warren’s die-hard fans. When I saw that she had been passed over as head of the Consumer Financial Protection Bureau, My first impulse was to blog about how unhappy this made me. I checked that impulse and decided to wait to see whose name was actually tapped. Afterall, I thought, the cryptic reports that “somebody already working at the CFPB” could include Richard Cordray. As it turns out, that’s who Obama nominated.
If you were driving along M-14 in Ann Arbor this morning, you may have heard somebody shout, “Yes! Yes! Yes!” That was me. This is extremely good news for consumer advocates. Cordray was a fierce defender of consumers. He took a leading role in a fifty-state investigation into the banks’ use of fraudulent affidavits in consumer cases and has aggressively enforced Ohio’s consumer protection statutes against some large players.
If I could choose somebody to head the CFPB, it would still be Elizabeth Warren. But Richard Cordray is a very close second. Before anybody on the left calls Obama’s decision not to nominate Warren a “betrayal of consumers” or anything like that, take a minute to look at Cordray’s record. This is fantastic news.
WASHINGTON – President Barack Obama will announce his intent to nominate Richard Cordray as the Director of the Consumer Financial Protection Bureau (CFPB). He will make the announcement at an event tomorrow at the White House.
Last year, the President fought to pass and signed into law…
Here’s much more info on the story than I was able to provide in a blurb.
Sad. I do hope this means that Elizabeth Warren will be running for the Senate.
President Barack Obama has chosen a candidate other than Elizabeth Warren as director of the new Consumer Financial Protection Bureau, according to a person briefed on the matter.
The president’s choice is a person who already works at the consumer agency, the person said today. Obama may make the nomination as soon as next week, another person briefed on the administration’s plans said.
The people, who spoke on condition of anonymity because the process isn’t public, didn’t give the name of the choice.
We seriously need to quickly find a way to let Obama know convincingly that the left does not consider his reelection essential.
Please let President Obama know you want this position to go to Elizabeth Warren. There is time if we all act right now. I’ll make it easy and provide the link: Click here.
“Republicans were clearly also hoping that if they threw enough mud, some of it would stick. For people like Ms. Warren — people who warned that we were heading for a debt crisis before it happened — threaten, by their very existence, attempts by conservatives to sustain their antiregulation dogma. Such people must therefore be demonized, using whatever tools are at hand.” - Paul Krugman - March 20, 2011
It stuck. Congratulations, Republicans.
Take this news as a clear indication that President Obama absolutely will cave to partisan pressure.
Welcome to America. Get a job. Papers, please.
For those interested, you can watch the CSpan video of the hearing this week here.
Committee Chairman Darrell Issa (R-CA) expressed concern that because the Bureau is housed within the Federal Reserve, Congress may have trouble with oversight, saying “The Federal Reserve is not transparent…it resist(s) any kind of congressional oversight and considers it unreasonable interference.”
In response to the Chairman’s criticism of the CFPB, Committee Democrats called on Rep. Issa to subpoena the heads of five of the country’s biggest mortgage banks. Ranking Member Elijiah Cummings (D-MD) told Issa “We have a fundamental difference of opinion about what we believe is important, and who we are here to serve.”
Warren, special adviser to the President, fielded questions on the CFPB’s mission, and also discussed the bureau’s role regulating credit cards and promoting fairness for home loans and reverse mortgages.
CSpan video of the proceedings at the link.
CSpan video of the proceedings at the link.
She said in her opening remarks that Americans are “all paying the high price for a broken consumer system.”
|—||— Rep. Mike Quigley (D-Ill.), commenting on the hostile reception given to Elizabeth Warren at a hearing Thursday before the House Committee on Oversight and Government Reform, quoted in Elizabeth Warren’s Summer Grilling - The Daily Beast (via tartantambourine)|