CFPB directorship post in doubt for Elizabeth Warren

Thursday, May 15th, 2014 By

Side-view close-up of CFPB director candidate Elizabeth Warren, who also happens to be in charge of the search for the position.

Republicans accuse Elizabeth Warren of having a “radical pro-consumer” agenda. (Photo Credit: CC BY-ND/David Quintana/Lost in the Ozone)

CNBC reports that the White House is struggling to fill the director’s chair for both the Consumer Financial Protection Bureau and the Office of Financial Research. Harvard professor and Obama adviser Elizabeth Warren may not have the stranglehold on the former, as was once thought, while multiple candidates for the latter position have balked at the prospect of six years of political infighting. Without clear leadership, both organizations will at best be all sound and fury, signifying nothing but the status quo for financially bruised consumers.

Fighting for political turf turns off OFR, CFPB candidates

The Office of Financial Research, which was established by the Dodd-Frank Wall Street Reform and Consumer Protection Act, will be charged with improving the quality of financial data available to policymakers, such as information regarding credit cards, cash advances and the payday cash advance industry.

However, if the White House fails to fill the leadership chair, the OFR will never reach its potential. Such high-profile candidates as Yale economist Robert Shiller (of Case-Shiller Home Price Index) have excused themselves from White House consideration because they think the six-year commitment and Washington war games aren’t worth the hassle.

An anonymous source close to the appointment process told CNBC that the OFR post requires a very particular type.

The position “needs a tough-guy-like attorney” who isn’t afraid of dogfights, said the source.

Check your radical pro-consumer agenda at the door

Republican critics of Elizabeth Warren claim that she’d be inappropriate for the office of Consumer Financial Protection Bureau director because of a “radical pro-consumer agenda” that would drown every consumer finance industry from credit card companies to payday cash advance lenders in penalty fees. Even though Prof. Warren is very close to the appointment process – President Obama has put her in charge of the search – Republicans and now even some Democrats and Independents are uncertain that Warren’s appointment would be confirmed.

Republican Sen. Judd Gregg of New Hampshire told ABC News that even considering Elizabeth Warren for the Consumer Financial Protection Bureau position is “a terrible adulteration of the process.” Such big-budget power (estimated as high as $500 million) in the hands of an appointee that can operate outside the bounds of Congressional oversight is unacceptable, said Gregg.

“My concern is that she would use the agency for the purposes of promoting social justice versus for the purposes of promoting better credit and having a stronger financial system,” said Gregg.

Enter Richard Shelby

Senate Republican Richard Shelby, the senior GOP member of the Senate banking committee, is considered the top Republican choice to head the Consumer Financial Protection Bureau. According to ABC News, Shelby vetoed the nomination of Joseph Smith to the Federal Housing Finance Administration and opposed appointing Nobel Prize-winning economist Peter Diamond to the Federal Reserve board. Clearly, Shelby knows how to oppose Democrat-favored appointees.

Sources

ABC News

CNBC

Credit.com News

‘Consumers need a cop on the beat’

http://www.youtube.com/watch?v=2UCWIyOQpes

Previous Article

« Bankruptcy Filings by State – Payday Lending “Not a Factor”

A recent Brigham Young University study indicates that contrary to the belief of some, payday lending has no part in state-to-state bankruptcy filings. Bankruptcy filings from state-to-state have nothing to do with the presence of payday lending and more to do with demographics.
Next Article

Hexavalent chromium found in tap water from 31 U.S. cities »

Hexavalent chromium, the carcinogen that made Erin Brockovich famous, contaminates tap water in 31 U.S. cities tested in a recent study ... enemy of chromium-6

Other recent posts by Steve Tarlow

Bankruptcy Filings by State – Payday Lending “Not a Factor”

A recent Brigham Young University study indicates that contrary to the belief of some, payday lending has no part in state-to-state bankruptcy filings.
Bankruptcy filings from state-to-state have nothing to do with the presence of payday lending and more to do with demographics.

Honda recalling airbags due to rupture/fragmentation problem

Honda will recall airbags due to a malfunction that can cause them to rupture and fling shrapnel at passengers. 438,000 cars are on the list.

JP Morgan Chase may cap debit transactions at $50 or $100

JP Morgan Chase is considering a $50 or $100 debit card transaction cap. This would apply even when used as credit.
Close-up of the VISA logo on a debit card. The Chase bank logo can be seen in the bottom right-hand corner of the photo.