September 17, 2010 by USA Post
The appointment will allow Ms. Warren, “the daughter of a janitor,” as Obama called it a Rose Garden introduction, actually get the agency up and running without having to go through a contentious confirmation battle in the Senate – a fight that a leading Democrat, Senator Christopher J. Dodd of Connecticut, predicted that it could not win the opposition proposed by the Republicans and the financial industry.
Mr Obama said Mrs Warren would be to recruit and initiate regulatory policies for mortgages; student loans and other credit products for consumption, and have a voice in picking up its first director. The favorite among administration officials is Michael S. Barr; a Treasury assistant secretary for financial institutions is a regulatory and financial service to households in low and middle incomes.
The interim role of Mrs. Warren avoids a political problem for Mr. Obama in this election period. Rejecting his had angered many party liberals, who are already demoralized by the administration policies they consider too centrist and friendly to Wall Street. Liberal and consumer groups had lobbied hard for it, along with some lawmakers, including Representative Barney Frank of Massachusetts, chairman of the House Financial Services Committee.
“This is the boldest Obama has taken the position to control the big banks on Wall Street,” the leaders of the group MoveOn.org, which are often critical of the president, wrote in an e-mail to members.
Business groups, while disappointed, privately acknowledged that Ms. Warren relief appears unlikely to become director.
The creation of the office was a central element of the legislation overhaul of financial regulation that Mr. Dodd and Mr. Obama sponsored signed into law in July. Its genesis was an article that Ms. Warren has written a year before the near-collapse of the financial system in 2008, a crisis blamed in part on unfair mortgage practices.
“Basically, the Consumer Financial Protection Bureau will be a watchdog for U.S. consumers, the enforcement of stricter financial protection history,” Obama said.
Ms. Warren has been appointed deputy chairman, a designation that is held by senior White House advisers. It will also be a special adviser to the Treasury secretary, Timothy F. Geithner and report jointly to him and the president.
Although Mr. Geithner nodded vigorously in approval when he was in the Rose Garden with Mr. Obama and Mrs. Warren, her relations with her have been the subjects of much speculation. Mrs. Warren, the president of the congressional committee overseeing the Troubled Asset Relief Program, has often been critical of Mr. Geithner and his department for the management of financial rescue. In private, Mr. Geithner promoted Mr. Barr for post-consumer.
Under the law of financial regulation, the Treasury has delegated authority to the office until a permanent director is appointed and confirmed by the Senate for a term of five years. Next July the office will assume regulatory authority for the rights of consumers, now entrusted to a wide range of agencies including the Federal Reserve, the Federal Trade Commission, the Federal Deposit Insurance Corporation and the Department of Housing and urban development.
Once a director is confirmed, the bureau may issue regulations and enforce new standards for mortgages, credit cards, payday loans and a wide range of other financial products.
It is expected to have a budget of up to $ 500 million and hundreds of employees; many of them come from institutions giving responsibilities for consumer protection. The office will theoretically be part of the Fed, which is obliged to finance its budget, its staff and rulemaking decisions must be made independent of the central bank.
Mrs. Warren, 61, an authority on bankruptcy law, has developed its following among liberals with his writings and advocacy on behalf of the families of the working class. But she drew the wrath of financial institutions for its persistent attacks on abusive lending practices, misleading and unfair. Bank executives and some Treasury officials say it was too broad in the criticism of these practices, and showed a certain lack of financial markets.
Republicans were quick to criticize Mr. Obama to circumvent Senate confirmation. Senator John Thune of South Dakota, the chairman of the Republican Policy Committee in the Senate, said in a statement: “This appointment represents a lack of transparency and the power recovered later by the President to extend the scope of a Government intrusion in the lives of Americans. ”
Warren writes on the website of the White House, said: “The new law creates an opportunity to make a tough cop on time and give real accountability and oversight of the credit market for consumption. The time for hidden tricks and traps in the fine print is finished. “
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