Tuesday, May 31, 2011

A Call for Elizabeth Warren to Resign Her Temporary CFPB Poistion

William D. Cohan, Bloomberg columnist and the author of the recently released Money and Power: How Goldman Sachs Came to Rule the World, though generally favorable to the horrific Consumer Finance Protection Bureau, which is just another power center for finance elitists to capture and turn to their advantage, is calling for the resignation of the power hungry Elizabeth Warren. Cohan writes:
Surely Professor Warren is clever enough to see the proverbial writing on the wall. The inconvenient truth facing Elizabeth Warren, the controversial Harvard Law School professor President Obama would like to run the newly created Consumer Financial Protection Bureau, is that she has made herself so bloody disagreeable on Capitol Hill that she has obliterated her chance of winning the Senate votes she needs to be confirmed.

Accordingly, for the good of the country, she should stop the charade now and resign her temporary post at the new agency...Warren’s personal style has angered many congressmen.
Warren resigning would be a good start, but the entire CFPB should be scuttled. It may happen. Cohan writes:

Meanwhile, over in the Senate -- the body that actually confirms appointees -- Warren is faring little better. In early May, 44 Republican senators sent the president a letter saying they would oppose any nominee of either party to head the bureau until “the lack of accountability in the structure” of it is “reformed.”

As the Senate’s top Republican, Mitch McConnell of Kentucky, put it, the “deeply-flawed” Dodd-Frank law granted the bureau’s director “unprecedented authority over financial institutions and main street businesses” and has given him or her “vast rulemaking, supervisory, investigative and enforcement powers and the authority to regulate … not just traditional financial institutions, but also potentially thousands of entrepreneurs and small businesses.”

A Political Ploy

This reeks of a political ploy by the Republican senators to gut an agency despised by their financial backers on Wall Street.

Oddly, a number of political analysts viewed the Republicans’ letter as tantamount to a “retreat” from fighting Obama on Warren and predicted it would make a recess appointment all but inevitable. Yet, having succeeded in averting that scenario last weekend, Republicans are trying to thwart the possibility of another attempt by refusing to recess over the July 4 holiday. (Something about having one or two senators stick around Washington over the holiday.) 
The Republicans are, as Cohan states, likely doing this at the behest of Wall Street, but the gutting of any government power center is always a good thing, regardless of who is instigating the move.

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