Warren named Advisor/Counsel. Maybe to move to Bank committ?

[SirNitram]

Link

WASHINGTON — 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 announcement will come this week, the source said.

In her new role, Warren will report to both the White House and the Treasury Department. However, the job will not require Senate confirmation.

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.

The independent consumer bureau was created under the financial regulatory bill Obama signed into law earlier this year. It will have vast powers to enforce regulations covering mortgages, credit cards and other financial products, and be financed by the Federal Reserve.

Warren has served as head of the Congressional Oversight Panel, charged with monitoring Treasury's handling of the $700 billion bank rescue fund known as the Troubled Asset Relief Program. She has at times clashed with Treasury over her committee's findings and conclusions about the use of TARP money.

As of Sept. 10, however, Warren has removed herself from the panel's work, a signal that the new Treasury post was a possibility.

It was unclear whether Obama also intends to nominate a permanent director for the job this week.

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.

We'll see if things go decently.

[Thanas]

So Obama caved once more. Yet another disappointment.

EDIT: Lack of support in the financial community. Yeah, I might see how they might not support anybody who would actually dare to go after them.

[Stark]

So America tries to create consumer protections, and fails? Shouldn't the Reserve Bank be full of qualified people with teh right attitude?

[J]

Shouldn't the Reserve Bank be full of qualified people with teh right attitude?

It is the right attitude. In America, the Federal Reserve Bank is a private bank run by the bankers for the bankers.
From that viewpoint, it's all going perfectly according to plan.

[SirNitram]

So Obama caved once more. Yet another disappointment.

I'm confused. She can't be appointed interim head of it, but the Treasury has control and she's moving to control the committee. How is this 'caving'? Is placing her up to be savaged by an organized hissy-fit on behalf of the bankers better?

[Thanas]

So Obama caved once more. Yet another disappointment.

I'm confused. She can't be appointed interim head of it, but the Treasury has control and she's moving to control the committee.

She is not moving to control the committee, so far this is nothing but a trial balloon.

How is this 'caving'? Is placing her up to be savaged by an organized hissy-fit on behalf of the bankers better?

I much prefer that to the stuff Obama is doing.

She cannot do the same hands-on stuff she would do as head of the agency from the committee. In fact, if the CPA becomes toothless, she cannot do squat rather than send them nasty memos or hold a few press conferences everyone will ignore.

Remote control of an agency with no ability to directly interfere with the day-to-day workings is not the same as having direct control.

[Edi]

A couple of Salon.com articles on this subject:

Did Obama just fumble a Warren touchdown?
The Elizabeth Warren Rorschach test

So, not necessarily as bleak s the initial impression was, but I'm going to hold on to my skepticism in any case.

[Thanas]

Recess appointment. Obama has used it before, so why not now? The article offers no explanation other than that Obama wanted to not have a fight (again), which he did not succeed on (again), because the GOP will scream bloody murder regardlesss of what he does (again), while he managed to anger only democratic allies and progressives (again).

Same stuff as on every other topic.

[Edi]

Recess appointment. Obama has used it before, so why not now? The article offers no explanation other than that Obama wanted to not have a fight (again), which he did not succeed on (again), because the GOP will scream bloody murder regardlesss of what he does (again), while he managed to anger only democratic allies and progressives (again).

Same stuff as on every other topic.

No disagreement here. There may be a very small upside to this, but even that is a complete "perhaps we can call it a maybe" type of thing. Which is still more than can be said of the other issues. Like I said, I'll hold on to my skepticism and expect that this is exactly what it looks like.

[Thanas]

You know what the real funny thing is?

An advisor can be fired.

An appointed bureaucrat, whether confirmed or unconfirmed, cannot simply be fired. Bush found that out the hard way (with the attorney scandal), as did Obama (guess why the Justice department is still filled with Bush drones).


So her effectiveness, if she gets any power at all, will essentially depend on how long Obama stays in power or how long until she becomes a political bargaining chip.

[J]

Either way it doesn't matter, the Consumer Financial Protection Bureau is part of the Federal Reserve which as I noted is a private bank by the bankers for the bankers. Expecting this new agency to have any actual powers is, in my opinion, delusional. If it annoys the bankers' interests the Fed will cut its funding and neuter it, Warren, no matter what position she ends up taking is effectively shuffled into a powerless dead end job.

In other words, business as usual for the finance industry.

[Andrew J.]

Does the Fed actually control the Consumer Protection Bureau's budget? That seems like a pretty large oversight given that it's independent from Fed influence in many other ways.

[Andrew J.]

Ghetto edit: No, I just looked it up. §1017(a)(1) says the bureau's budget is determined by its director and the board of governors has to transfer the money.