Harvard’s Warren picked as adviser for creation of consumer protection bureau

[FRED]

Harvard’s Warren picked as adviser for creation of consumer protection bureau
David Pierce, Boston.com Staff
September 15, 2010 09:16 PM

WASHINGTON — President Obama plans to appoint Harvard law professor Elizabeth Warren to a Treasury Department advisory post that will allow her to help create the consumer protection bureau, a key component of the new financial regulatory overhaul, without subjecting her to an arduous Senate confirmation process, a Democratic official told The Boston Globe.

Warren will be an assistant to the president and a special adviser to Treasury Secretary Timothy F. Geithner, said the official, who was briefed on the president’s plans but spoke on condition of anonymity because the official announcement has not been made. She will report directly to the president and Geithner and lead the administration’s work on the bureau. more...

There's hope after all, folks! The political process isn't totally broken. In case you missed it, the Warren interview for EJ's book.

[Slimprofits]

Re: Harvard’s Warren picked as adviser for creation of consumer protection bureau

There's hope after all, folks! The political process isn't totally broken.

without subjecting her to an arduous Senate confirmation process

They skipped the broken political process.

[doom&gloom]

Re: Harvard’s Warren picked as adviser for creation of consumer protection bureau

Warren will report ot Obama & TurboTax(cheat) Timmy Geithner. I am not all that optimistic she will get much done, but I am still hopeful...

[BigBagel]

Re: Harvard’s Warren picked as adviser for creation of consumer protection bureau

"Some banking industry representatives have said that Warren’s consumer advocacy might impair her ability to lead the new bureau. Having her work at Treasury could alleviate concerns by the financial industry about how she might use the agency’s wide authority."

I agree. Someone who's going to run a consumer protection bureau should not be a consumer advocate. If you put a consumer advocate in the position that person might actually do their job and we wouldn't want that.

I don't see how this is hopeful. It's FIRE in control.

[we_are_toast]

Re: Harvard’s Warren picked as adviser for creation of consumer protection bureau

There's hope after all, folks! The political process isn't totally broken.

What hope? This is a political move to quiet the left before the midterms, then appoint someone else to lead the agency after the elections. But, like most of Mr. Obama's incompetent political moves, it will end up alienating his base.

[vinoveri]

Re: Harvard’s Warren picked as adviser for creation of consumer protection bureau

There's hope after all, folks! The political process isn't totally broken. In case you missed it, the Warren interview for EJ's book.

Were not we all feeing a bit overly sanguine less than 2 years ago at the appointment of Volcker as "advisor"?
We see how effective he was (remember the Volcker rule?)

Still, I suppose it is a step in the right direction and I'm optimistic some good will likely result (i.e., just enough reform for the masticative satisfaction of the masses, ... another version of extend and pretend).

FIRE needs to be taken down, or have you forgotten? It is the overly financialization of the economy that is the problem and feeds on itself in the vicious circle of regulation capture and lobbying for "easy ways to make money".

If reform means restructuring the economy back to <20% finance, then good. If it means that consumers will now need to sign an additional 20 "disclosure and consent" forms to get credit, then failure.

[gnk]

Re: Harvard’s Warren picked as adviser for creation of consumer protection bureau

I agree that FIRE has a stranglehold on the government thru reg capture. Because FIRE IS the existing power structure. No one is big enough, and no one else can create money from thin air to fight them.

FIRE will be replaced and tamed, but only after it collapses from within. That is, when the inevitable geometric progression of usury (as Hudson describes it) overloads the system and it collapses.... and not one day before. My fear is that FIRE will take the government's currency, and thus the government, down with it.

[aaron]

Re: Harvard’s Warren picked as adviser for creation of consumer protection bureau

Were not we all feeing a bit overly sanguine less than 2 years ago at the appointment of Volcker as "advisor"?
We see how effective he was (remember the Volcker rule?)

Exactly!

I see this as a loss. She is being marginalized.

A Goldman Sachs alumni will run the department eventually.

[karim0028]

Re: Harvard’s Warren picked as adviser for creation of consumer protection bureau

What a sham... An advisor has no power but to advise... She will "almost" be running the new program but when it comes to decisions, timmy, summers & ben "will" be running it...

Unfortunately, She will accomplish almost nothing but sound bites for the administration just like Volcker....

[don]

Re: Harvard’s Warren picked as adviser for creation of consumer protection bureau

Wednesday, September 15, 2010

Elizabeth Warren on Way to Being Sidelined as Head of Consumer Protection Agency, Relegated to “Advisor” Role

The body language of the Administration has been clear from the outset on the question of whether Elizabeth Warren would get its nomination to head of the new financial services consumer protection agency. Despite the occasional public remark regarding her undeniable competence, which really amounted to damning her with faint praise, Team Obama has never been on board with the idea. Michael Barr, assistant treasury secretary, was noised up early on as a possible candidate, but the PR push halted abruptly when her many supporters pointed out the obvious, that she was clearly the better choice. Then we had the no doubt authorized Chris Dodd kiss of death, that he thought she was qualified but doubted she could be confirmed by the Senate.

The reality is that the Administration was never going to appoint her; the only question is whether she can be kept in their orbit and not be a net negative as far as their dubious priorities are concerned. Timothy Geithner has become a central actor on all Adminstration economic policy matters, giving him more reach, and thus more face time with the White House than is normal for a Treasury secretary. Given how Warren has successfully, and correctly, roughed Geithner up before Congress in her role as head of the Congressional Oversight Panel for various TARP administrative shortcomings, he was guaranteed to be at best a non-supporter.

But on a much more basic level, the Warren marginalization isn’t about personalities, although the powers that be love to pigeonhole thorns in their side that way. The clashes reflect fundamental differences in philosophy. Geithner, the Administration that stands behind him, and Dodd all are staunch defenders of our rapacious financial services industry, even though they make occasional moves to disguise that fact. Warren, by contrast, is clearly a skeptic, and a dangerous one to boot, because she understands the abuses well and is able to communicate effectively with the public.

Expect Warren to be pushed further to the sidelines, just as Paul Volcker has been (oh, and pulled out of mothballs when the Administration desperately needed to create the appearance it really might be tough on banks). Perhaps they hope her tenuous standing as acting head can be used to keep her in line. But she may also believe she has more influence even in a likely to be weakened position than on the outside as a critic. And sadly, that may prove true. Individuals, no matter how stellar their resumes, command far less media attention than those who hold powerful posts.

Now the Administration is pretending to hide its cards on this one. Technically, it could bypass confirmation altogether and have Warren as de facto leader of the agency, and never name a permanent director. However, the end game seems obvious: keep her in orbit through mid-terms to prevent a hissy fit from her many fans, then name a more bank friendly permanent director (the argument no doubt being that her effectiveness is compromised by her not being confirmed, and with the odds high that the elections will put more Republicans in Senate seats, the Administration will argue its hands are tied). However, this timetable could be optimistic; as a special advisor, she serves at the pleasure of the Administration and will be a lame duck as soon as a permanent director candidate is put forward.

Will Warren last? Both Brooksley Born and Sheila Bair have been accused of not being team players. With the team being industry cronies, that’s a badge of honor. But each also had a clear bureaucratic role, and Born was still pushed out. I’m surprised Warren is accepting such a compromised position. Perhaps she believes she still has a bully pulpit and can embarrass the Administration into doing the right thing. But it will take a very thick skin for her to follow that course of action.

From MSNBC. Note its original headline was “Wall Street critic won’t get top consumer job”; it has been revised to the anodyne, “Wall Street critic to help set up consumer agency“:

The White House will name Wall Street critic Elizabeth Warren to a special advisory role in setting up the new Consumer Protection Agency called for by the financial regulatory overhaul, a source familiar with the White House’s plans told NBC News on Wednesday….

The 61-year-old Harvard University professor had been considered the leading candidate to head the bureau itself, but her lack of support in the financial community could have set the stage for contentious Senate hearings that may have ultimately derailed her confirmation…

Others mentioned as contenders to lead the agency are Michael Barr, an assistant treasury secretary who was a key architect of the administration’s financial regulatory plans, and Eugene Kimmelman, a deputy assistant attorney general in the Justice Department’s antitrust division.

http://www.nakedcapitalism.com/2010/...isor-role.html

[karim0028]

Re: Harvard’s Warren picked as adviser for creation of consumer protection bureau

Wednesday, September 15, 2010

Elizabeth Warren on Way to Being Sidelined as Head of Consumer Protection Agency, Relegated to “Advisor” Role

The body language of the Administration has been clear from the outset on the question of whether Elizabeth Warren would get its nomination to head of the new financial services consumer protection agency. Despite the occasional public remark regarding her undeniable competence, which really amounted to damning her with faint praise, Team Obama has never been on board with the idea. Michael Barr, assistant treasury secretary, was noised up early on as a possible candidate, but the PR push halted abruptly when her many supporters pointed out the obvious, that she was clearly the better choice. Then we had the no doubt authorized Chris Dodd kiss of death, that he thought she was qualified but doubted she could be confirmed by the Senate.

The reality is that the Administration was never going to appoint her; the only question is whether she can be kept in their orbit and not be a net negative as far as their dubious priorities are concerned. Timothy Geithner has become a central actor on all Adminstration economic policy matters, giving him more reach, and thus more face time with the White House than is normal for a Treasury secretary. Given how Warren has successfully, and correctly, roughed Geithner up before Congress in her role as head of the Congressional Oversight Panel for various TARP administrative shortcomings, he was guaranteed to be at best a non-supporter.

But on a much more basic level, the Warren marginalization isn’t about personalities, although the powers that be love to pigeonhole thorns in their side that way. The clashes reflect fundamental differences in philosophy. Geithner, the Administration that stands behind him, and Dodd all are staunch defenders of our rapacious financial services industry, even though they make occasional moves to disguise that fact. Warren, by contrast, is clearly a skeptic, and a dangerous one to boot, because she understands the abuses well and is able to communicate effectively with the public.

Expect Warren to be pushed further to the sidelines, just as Paul Volcker has been (oh, and pulled out of mothballs when the Administration desperately needed to create the appearance it really might be tough on banks). Perhaps they hope her tenuous standing as acting head can be used to keep her in line. But she may also believe she has more influence even in a likely to be weakened position than on the outside as a critic. And sadly, that may prove true. Individuals, no matter how stellar their resumes, command far less media attention than those who hold powerful posts.

Now the Administration is pretending to hide its cards on this one. Technically, it could bypass confirmation altogether and have Warren as de facto leader of the agency, and never name a permanent director. However, the end game seems obvious: keep her in orbit through mid-terms to prevent a hissy fit from her many fans, then name a more bank friendly permanent director (the argument no doubt being that her effectiveness is compromised by her not being confirmed, and with the odds high that the elections will put more Republicans in Senate seats, the Administration will argue its hands are tied). However, this timetable could be optimistic; as a special advisor, she serves at the pleasure of the Administration and will be a lame duck as soon as a permanent director candidate is put forward.

Will Warren last? Both Brooksley Born and Sheila Bair have been accused of not being team players. With the team being industry cronies, that’s a badge of honor. But each also had a clear bureaucratic role, and Born was still pushed out. I’m surprised Warren is accepting such a compromised position. Perhaps she believes she still has a bully pulpit and can embarrass the Administration into doing the right thing. But it will take a very thick skin for her to follow that course of action.

From MSNBC. Note its original headline was “Wall Street critic won’t get top consumer job”; it has been revised to the anodyne, “Wall Street critic to help set up consumer agency“:

The White House will name Wall Street critic Elizabeth Warren to a special advisory role in setting up the new Consumer Protection Agency called for by the financial regulatory overhaul, a source familiar with the White House’s plans told NBC News on Wednesday….

The 61-year-old Harvard University professor had been considered the leading candidate to head the bureau itself, but her lack of support in the financial community could have set the stage for contentious Senate hearings that may have ultimately derailed her confirmation…

Others mentioned as contenders to lead the agency are Michael Barr, an assistant treasury secretary who was a key architect of the administration’s financial regulatory plans, and Eugene Kimmelman, a deputy assistant attorney general in the Justice Department’s antitrust division.

http://www.nakedcapitalism.com/2010/...isor-role.html

Yup, follow the action, not the speech.... This is like one big exercise in "follow the birdie"...

[doom&gloom]

Re: Harvard’s Warren picked as adviser for creation of consumer protection bureau

Yup, follow the action, not the speech.... This is like one big exercise in "follow the birdie"...

yup. anyone remember this: http://www.rollingstone.com/politics...RS_show_page=0

[don]

Re: Harvard’s Warren picked as adviser for creation of consumer protection bureau

Yup, follow the action, not the speech.... This is like one big exercise in "follow the birdie"...

I am worn out with 'park talk' about Obama is a communist Kenyan when the fact that all of the financial mafiosi that are at the core of this 'administration' must be ignored. "I don't want to talk about that !" is a familiar screech.

Best Guess: 90% + of Americanos can't handle the truth....

[karim0028]

Re: Harvard’s Warren picked as adviser for creation of consumer protection bureau

I am worn out with 'park talk' about Obama is a communist Kenyan when the fact that all of the financial mafiosi that are at the core of this 'administration' must be ignored. "I don't want to talk about that !" is a familiar screech.

Best Guess: 90% + of Americanos can't handle the truth....

Don, how did you ever get the impression that i thought Obama was a communist? I am not one of those tea bag followers I dont really care who is in office, follow the money and you will see who really runs the place... I have essentially become politically agnostic, each party will say whatever the masses want to hear and then once in office will do as its masters say to do.... Bread and circus's it is then.... Or in our case nascar/WWE and welfare.....

Impoverish someone and leave them just enough to survive and they will become docile, broken hearted and never disobey... Its the same way a pimp treats his girls or a drug dealer his customers.....

[wayiwalk]

Re: Harvard’s Warren picked as adviser for creation of consumer protection bureau

If she could only be given the freedom to make change that was given to Michelle Rhee....