Truth to Power

Elizabeth Warren Supports Plans for Consumer Protection Agency

In Consumer Protection, Corporate Malfeasance, Economy, News, Politics on June 23, 2010 at 6:56 pm

Ok, I’m an Elizabeth Warren fan- if more people were like her and more importantly, if more members of Congress had heeded her advice a decade ago we might not have had the global financial crisis. She advocated years ago for a Consumer Financial Protection Agency and during the campaign, Barack Obama said he supported her vision of what it should look like. Today however, two years after the economic meltdown the White House has backed off its original demands for an agency that actually has teeth and seems to have left it entirely in the hands of Congress, where the banking lobby is doing everything possible to kill it.

Over at the Huffington Post, this caught my eye:

Elizabeth Warren, the Harvard professor who originated the idea of the consumer financial protection agency, supports the current version of the bureau that Wall Street reform conference committee negotiators are settling on, she told the Huffington Post.

Though her endorsement isn’t a ringing one, Warren, who chairs the congressional panel overseeing the bailout, said that the version emerging from negotiators is strong enough to rein in abuses in the lending industry despite exemptions that Congress has carved out for auto dealers.

“I’m disappointed that Congress seems to be taking the side of auto lenders and big banks over the Pentagon, community banks, and all the public interest groups that oppose an auto dealer carve-out, and there are some other problems as well,” said Warren. “But right now the bureau has the authority and the independence it needs to fix the broken credit market. I keep waiting for an incoming missile that means the banks have won their fight to destroy this consumer agency, but that hasn’t happened so far — and I don’t think it will.”

Indeed, the bureau was left for dead almost as often as the public option was during the health care debate, yet it rose after each assault. Backers of the CFPA — which has now become the CFPB — wanted an independent director, an independent source of funding that Congress can’t cut off and independent authority to write and enforce rules.

[snip]

While the CFPB isn’t a stand-alone agency — it will be housed within the Federal Reserve — the Fed does not have authority over it. Instead, the Fed is required to fund the bureau, meaning members of future Congresses can’t cut off funding for the CFPB….

You know, the financial industry essentially almost brought down the entire global economy and the deregulation, predatory practices and total lack of business ethics all played a role. And yet despite all this, the democrats (including the White House) and the GOP still can’t even get behind strong consumer protections. Where is the outrage? This should have been easy for the Democrats given the palpable and justified anger at Wall Street. And yet, the Democrats, despite controlling both houses of Congress and the White House, couldn’t lead a bunch of ants across a picnic table.

If they won’t stand up for the average consumer because of pressure from the very people who brought the economy crashing down, then what is it exactly that they do stand for?

Add to FacebookAdd to DiggAdd to Del.icio.usAdd to StumbleuponAdd to RedditAdd to BlinklistAdd to TwitterAdd to TechnoratiAdd to Yahoo BuzzAdd to Newsvine

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: