Government

Obama Dodges Senate: He’ll Name Warren as Consumer Agency Advisor

President Obama plans to announce this week that he will appoint Elizabeth Warren, the Harvard Law School professor who initially proposed the Consumer Financial Protection Bureau (CFPB), to lead the effort to get the new federal agency up and running.

According to reports, the president will appoint Warren to a special advisory role for the White House and Treasury Department. The maneuver will allow her to act as an interim head of the CFPB. It also will enable her to begin setting up the agency immediately without involving the U.S. Senate in a confirmation process and prevent a possible filibuster that would otherwise block her nomination.

Warren has risen to prominence among progressives as chair of the Congressional Oversight Panel of the Troubled Asset Relief Program (TARP) and many on the Left consider her a formidable force to challenge Wall Street and the banking industry.  In contrast, many working in the financial sector have opposed her appointment, pegging her as anti-business.

The idea for an agency to protect consumers involved in financial transactions in a similar way the Consumer Protection Agency regulates dangerous or potential harmful consumer goods reportedly came from an essay Warren wrote before the financial meltdown in 2007 for Democracy: A Journal of Ideas:

Why are consumers safe when they purchase tangible consumer products with cash, but when they sign up for routine financial products like mortgages and credit cards they are left at the mercy of their creditors?

The difference between the two markets is regulation. …

President Obama has heralded Warren’s call for expanded government regulation, saying it will be “hugely helpful to middle-class families in the years and decades to come… an independent agency, whose sole job is to protect families in their financial transactions.”

The Democrats’ financial reform bill that became law in July grants the Treasury Department authority to take the lead in helping create the new Consumer Financial Protection Agency.  However, at least one Republican is challenging whether President Obama should be allowed to install Warren without Senate confirmation.

In a letter delivered to the White House today, Sen. Bon Corker, R-Tenn., a member of the Senate Banking Committee, wrote that he “strongly” believed the intent of the Dodd-Frank financial regulation legislation “was to have the head of this bureau go through the nomination, vetting and confirmation process.”

Corker wrote that the position of director of the bureau “is unprecedented in the nature of its unfettered and unchecked authorities, which makes the confirmation process even more important to the interests of the American people.  The individual who heads this bureau will be able to make rules, with ultimately no checks and balances, that could have broad reaching implications for the U.S. economy as it relates to accessing credit, social justice and the safety and soundness of the U.S. banking system.  The job is disproportionately reliant on the decisions of one individual with access to large sums of taxpayer monies to carry out the agency agenda.”

The opposition to bypassing the Senate is not just a Republican concern.  Democratic Sen. Chris Dodd, D-Conn., one of the architects of the financial regulatory bill, also warns the administration about the political ramifications of unilaterally appointing Warren.

“This is a big job, an important job, and it needs to be — you’ve got to build the support for that institutionally or the next Congress — and none of us know what the outcome’s going to be politically — you could gut this before it even gets off the ground. If you don’t have someone running it early on, it jeopardizes the existence of the consumer protection bureau,” Dodd said.  When asked how Congress might “gut” the agency, he replied: “Money. Take away the money. That’s how you always do it.”

Despite the senators’ objections, naming Warren as an “assistant” or “counselor” to both the president and Treasury Secretary Tim Geithner would allow President Obama to bypass the traditional Senate confirmation process.

“I’m concerned about all Senate confirmations these days” including if he were to “nominate somebody for dog catcher,” the president joked last Friday when asked if he was concerned about Warren’s ability to be confirmed. “I’ve got people who have been waiting for six months to get confirmed who nobody has an official objection to and who were voted out of committee unanimously, and I can’t get a vote on them.”

———–

For more information on Elizabeth Warren, check out this video of her recent appearance at Netroots Nation, speaking on her progressive economic vision.  Dubbed a “true progressive champion,” Warren participated in a panel discussion on “Building a Progressive Economic Vision” with AFL-CIO president Richard Trumka, Florida Congressman Alan Grayson (D), George Goehl of National People’s Action, Phaedra Ellis-Lamkins of Green For All and Deepak Bhargava of the Center for Community Change.

Comments (54)

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  • makom
    Posted on September 16, 2010 at 8:49am

    But, Why is The Anti-Christ Obama Destroying America. If you truly want to know what is going on; Then you will have to accept these things as the TRUTH. Once you understand the following things; All things will be understood. So I tell you Obama is Satan on Earth, Lawless One, or what ever else you want to call this Demonic Figure. His words describe him, He is a False Hope, If you listen to him you will love him. He carries a Bow without an Arrow. He will conquer all through his speech, his false hoods will capture all who sit and listen to him.
    2 Thessalonians 2:11-12
    11And for this reason God will send them strong delusion, that they should believe the lie, 12 that they all may be condemned who did not believe the truth but had pleasure in unrighteousness.

    Report Post »  
  • R Bernstein
    Posted on September 16, 2010 at 8:33am

    Another wonderful job by Comrade Obama. Why should he bother with the Senate? Certainly the Constitution does not apply to him, does it? Ignore the people, ignore the law, consolidate power….when in history has that ever happened before? How did that work out for everyone back then?

    Report Post »  
    • missmarie
      Posted on September 16, 2010 at 12:55pm

      And to think I’ve been afraid of what is going to happen in the lame duck session. They really have made themselves obsolete under the current administration.

      Report Post » missmarie  
  • thesixfour
    Posted on September 16, 2010 at 2:25am

    I suspect they may have some issues collecting taxes next April, if this crap continues.

    Ill let you know if i disappear in the next few days now. Or get exiled.

    Report Post » thesixfour  
  • S.A
    Posted on September 16, 2010 at 2:23am

    This 3rd WORLD PRESIDENT/DICTATOR has PERFECTED the ART of APPOINTING,rather than going thur the PROPER/LEGAL PROCESS,that the CONSTITUTION~REQUIRES.

    Im of the FRAME of MIND,that whatever OBAMA does (ILLEGALLY) I just wont COMPLY. I use the CONSTITUTION as MY~DEFENSE.

    Maybe I will become AMERICA’S FIRST POLITICAL~PRISONER.

    Report Post » S.A  
  • SideSho
    Posted on September 15, 2010 at 11:53pm

    Look,
    I’m very conservative and on Nov 2 we will show the Dims the door! However, in this one case, the ObamaNation has made a reasonable choice. I saw an interview with her on Charlie Rose (I know he’s left leaning, but “Know your enemy”) and I must say she made sense.

    Her opponent was the banking lobbyist in DC and listening to him and watching his body language, I could see the slime drip from his mouth. I usually reserve that kind of metaphor for our friends on the left, but in this case, she was right on.

    So, if anyone has any factual info as to why she should not be appointed, please reply to me.

    Anyway, Nov 2, lets put our “Political capitol” where our mouths are! Talk to your friends, neighbors, family and the people you interact with everyday! Time is short!

    In Solidarity,

    SideSho

    Report Post » SideSho  
    • TruthLover
      Posted on September 16, 2010 at 2:12am

      Yes, but – the enemy of our enemy is not our friend. We should have learned that in Iran. I mean, Iraq. I mean, Afghanistan. I mean, Columbia. I mean…oh heck.

      Report Post » TruthLover  
    • trilateral-my-ass
      Posted on September 16, 2010 at 3:11am

      In a nutshell:
      1. Warren is a socialist.
      2. The idea of Consumer Protection Agency is not new – it‘s copied from the socialist Denmark’ Consumer Protection Agency where it has been for about 65 years.
      3. This is another socialist installation that is designed for 3 purposes: 1 – to limit/cap business profits (banks and credit card companies) and 2 – to control consumer behaviour and 3 – to limit free market capitalism by directing consumers to certain vendors only, eventually to only government issued mortgages and credit cards (just like with student loans).
      4. There will be new regulations installed on credit card companies and mortgage brokers that will be passed onto consumers in the form of fees or taxes.
      5. As the result, we’ll pay more in the name of our own protection (because we are stupid like Simpson, remember?)
      6. The federal government will grow again adding another several thousands of bureaucrats.
      7. This is one of the most hidden attempts to win control over American consumers as it will eventually lead to a one-card-does-all solution as it exists in Denmark and other European countries. One plastic card that you will HAVE TO present to get approved for any loan or credit card and that will give federal government access to your entire financial history (as it does in Denmark).
      8. This Agency must be repealed.

      Report Post »  
  • Ccbn213
    Posted on September 15, 2010 at 11:43pm

    Altogether now…can you say “abuse of power”?

    Report Post »  
  • carol m
    Posted on September 15, 2010 at 10:36pm

    Once again if you want the epitome of sneaky and underhanded just look to the democratic party. They are the masters. Yes the republicans do it to but the dem have brought this to an art form

    Report Post »  
  • spendthrift
    Posted on September 15, 2010 at 10:31pm

    Enough is Enough, Reform is a Progressive term. Restoring is an American Way. Go T.E.A.G.O.P……for our country has to be saved.

    Report Post » spendthrift  
  • valricoslash
    Posted on September 15, 2010 at 10:25pm

    Just what we need is another federal agency looking our for us. We actually need a consumer agency that monitors waste in the Federal government.

    Report Post » valricoslash  
  • Randyrocker
    Posted on September 15, 2010 at 10:11pm

    This is Obama’s gangster style, like a Mob Boss he runs the country, and appoints his made men as his personal hit man Czars. Along comes a talented individual who is seriously concerned about the country and the people living in the Middle Class Ms. Elizabeth Warren. What does he do, he doesn’t allow her to be the choice of the Senate, oh no, he wants to handicap her and force her allegiance to no one else but him, the American Gangster Messiah. This way, he forces her to tow his line and only his line, otherwise he fires her, or cuts her off, closing her mouth down forever more, limiting any opposition to his personal agenda. He in essence gags her at the same time he appoints her. Furthermore, she is so beholding to him, she agrees to being used as his prop in any photo session, where he needs her cover. Obama is the worst there is when it comes to someone being genuine, the tribal nature of the way he runs his office is indicative of an African Tribal Leader looking for his Witch Doctor to cast VooDoo Spells on whoever frightens him, and right now he’s completely and totally frightened of the American people. Obama’s likened to James Bonds favorite drink, ‘shaken but not stirred’, at least not yet that is.

    Report Post »  
    • banglindags
      Posted on September 15, 2010 at 11:53pm

      Bambi needs another meat shield cause he’s feeling the pressure.

      Report Post »  
  • GlennBeckIsADemagogue
    Posted on September 15, 2010 at 9:49pm

    How many federal judge confirmations are being held up for no reason other than political obstructionism?

    A lot of senators showed how highly dependent they were on Wall Street as the political debate about financial reform wore on. I’m not talking about supporting free enterprise and capitalism; i’m talking about politicians being owned by corporations. They will not vote as representatives of their constituents, or as thinking men with a conscience. They will vote as the corporate lackeys that they are.

    By the way, last time I read the Constitution, there was no mention of the CFPA.

    So, the president appoints Warren as interim head of an agency. BFD! It’s not even an issue worth discussing, but since we already are, he made the right move.

    Report Post » GlennBeckIsADemagogue  
    • Mahna Mahna
      Posted on September 16, 2010 at 3:59am

      I agree with you on Congress selling their souls to special interests, but Obama gets a pass for governing via czars, appointments and regulations perpetuated solely by ideology opposed to by a vast majority of America? Circumventing the Constitution and checks and balances is not presidential, it’s tyrannical.

      Report Post »  
    • teapartypatriotswillprevail
      Posted on September 16, 2010 at 4:45pm

      I DON’T agree with you on anything!!!!!!!!!!

      Report Post »  
  • ann123
    Posted on September 15, 2010 at 9:43pm

    here is a question can the congress repeal these people that obama picks ?

    Report Post »  
    • van
      Posted on September 15, 2010 at 9:58pm

      I got this from wikipedia: “To remain in effect a recess appointment must be approved by the Senate by the end of the next session of Congress, or the position becomes vacant again; in current practice this means that a recess appointment must be approved by roughly the end of the next calendar year.” If it’s accurate then the answer is that Congress can allow the appointment to expire by not approving it within the time frame.

      Report Post »  
  • metalmeisterdude
    Posted on September 15, 2010 at 9:33pm

    My grandfather said “When the government mailed out the first welfare checks, that is the first sign of socialism.“ He preached to us growing up about condervatism and read ”Spotlight” newspaper until his death. I hadn’t ever taken what he and many in my family seriously until the last couple of years. Now I feel that it was time wasted. I am learning more every day and speaking out without fear. I may be a late bloomer, but I am here now.

    Report Post » metalmeisterdude  
    • OhPatsy
      Posted on September 15, 2010 at 9:52pm

      You are so right. The Progressives had a one hundred year start on us, but we are awake now and have to make up for lost time. We’ll get back to our roots eventually, but it won’t be easy.

      Report Post » OhPatsy  
  • w4jle
    Posted on September 15, 2010 at 9:32pm

    I love it when people are so stupid they can’t tell satire from truth…

    Report Post » w4jle  
  • Angel D
    Posted on September 15, 2010 at 9:29pm

    Are you Michelle!!!

    Report Post »  
  • Angel D
    Posted on September 15, 2010 at 9:26pm

    Ah Yes! Another addition to Obama’s Shadow government.

    Report Post »  
  • smartypoop
    Posted on September 15, 2010 at 9:12pm

    Here we go again, circumventing the Constitution again. I guess you only envoke the Constitution when your promoting the rights of people from other countries.

    Report Post »  
  • OhPatsy
    Posted on September 15, 2010 at 9:07pm

    Lie , cheat or steal. Back doors, bribes, Executive Orders, end-runs around the Constitution. Whatever it takes to get the Progressive agenda moving forward, they will do. These elections are so important, because there is so much to try to undo, defund, and hopefully, prosecute, that we simply must get the majority to accomplish these things. She sounds pretty bad for business, which is exactly what we have all learned to expect from this Administration. Same old, same old. Remember in November!!

    Report Post » OhPatsy  
  • relayer24
    Posted on September 15, 2010 at 8:56pm

    Well, at least there is some pushback from Congress. Maybe they will begin to realize that these folks mean to make them completely irrelevant. Dodd creates the job, but seems powerless, or unwilling to scream from every media outlet that Obama has over stepped his authority. I doubt he will do little more than whimper as he hands over the country without a fight. Thanks, Dodd.

    Report Post »  
  • Silat
    Posted on September 15, 2010 at 8:42pm

    Rep Issa knows where he lives and after November the trials will begin. Impeachment and then a good prison sentence.

    Report Post »  
    • I am 'We the People
      Posted on September 15, 2010 at 9:43pm

      Wouldn’t that be nice? I think that a treason charge would be more aplicable.

      Report Post » I am 'We the People  
    • Paradigmm
      Posted on September 16, 2010 at 9:51am

      Agreed, Bush and Cheney need to be sitting in jail for their war crimes. Not to mention their roll in the 9/11 attacks. Bring it on!!!!!!

      Report Post » Paradigmm  
    • teapartypatriotswillprevail
      Posted on September 16, 2010 at 4:36pm

      PARADIGMM – name the crimes or SHUT-UP………….

      Report Post »  
    • Paradigmm
      Posted on September 17, 2010 at 12:43pm

      Well Tea, it would appear that my responses are being censored. Someone either doesn’t want to know the truth or is doing their best to cover it up.

      Report Post » Paradigmm  
  • van
    Posted on September 15, 2010 at 8:40pm

    Who’s surprised by this, just another big government socialist/marxist same as the one who is naming her.

    Report Post »  
  • mzmaj7
    Posted on September 15, 2010 at 8:35pm

    Yet another shining example of our new Era of Transparency

    Report Post »  
  • leftylemn
    Posted on September 15, 2010 at 8:34pm

    Ignore Dingleberry!!!

    Report Post »  
  • flyguync
    Posted on September 15, 2010 at 8:32pm

    What could possibly go wrong here? Just another back-door, behind the scenes action by this administration. It’s pretty bad when even the Democrats question it.

    Report Post »  
  • leftylemn
    Posted on September 15, 2010 at 8:32pm

    Ignore dingleberry!!!!!!

    Report Post »  
    • Christ on a Stick
      Posted on September 15, 2010 at 9:24pm

      She cares about the American people and will do a great job!!!

       
    • Beckofile
      Posted on September 15, 2010 at 9:56pm

      Wow another professor with a bunch of theories? I have heard she hates capitalism and she plans to do to credit cards and banks what Frank and Dodd did for mortagages. This should be just great.

      Report Post » Beckofile  
    • trilateral-my-ass
      Posted on September 16, 2010 at 3:25am

      People, you need to educate yourself! You’re completely out of touch on the most programs that Obama is implementing. This Agency is one of the biggest threats to the free market Capitalism and your own freedoms. You need to read … it’s all on the Internet. Warren is clear about it – it’s a Tool, the Tool to control YOU. How can you win over ‘intellectual’ liberals if you have no clue what this Agency is all about ….?

      Report Post »  
    • belleharbor
      Posted on September 16, 2010 at 5:47am

      When will we the people get it the bama is out to crush our way of life and as far and dingleberryteabags shut up and go back to your nyc assisted life freeloader.that you are, or you would not be so against freedom to live and earn for yourself so go collect our hard earned money and shut up for sakes

      Report Post » belleharbor  
    • Fletch
      Posted on September 16, 2010 at 8:20am

      It may take a month or so but those who jump on every thread while sitting naked in their Mother’s basement living on Soros Bucks from Media Matters will eventually go away

      ignore the attention whores

      Report Post » Fletch  
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