President Barack Obama ended weeks of speculation on Friday by announcing that consumer advocate Elizabeth Warren would be tasked with helping launch the new consumer watchdog agency proposed within the financial reform law passed earlier this year.
Warren, 61, was born and raised by blue-collar parents in Oklahoma. She entered college at the age of 16 on a debate scholarship and eventually earned a law degree from an affiliate of Rutgers University. She joined the faculty of the Harvard Law School in 1992.
Warren is also credited as being the brainchild of the Bureau of Consumer Financial Protection. This, along with her history of butting heads with credit card companies and pay-day lenders alike, made choosing her an easy decision for Obama.
“Secretary Geithner and I both agree that Elizabeth is the best person to stand this agency up. She was the architect behind the idea for a consumer watchdog, so it only makes sense,” said the president from the Rose Garden on Friday. “I have known Elizabeth Warren since law school. She’s a native of Oklahoma. She’s a janitor’s daughter who has become one of the country’s fiercest advocates for the middle class.”
Officially, Warren will serve as a special advisor to both the president and Treasury Secretary Tim Geithner. This allows her to sidestep a potentially lengthily confirmation process. It also means that Warren is unlikely to be appointed the agency’s director since that position would require a Senate confirmation. One of her tasks in the coming months will be to find someone to lead the agency.
The president’s decision to tap Warren has been criticized roundly by Republicans who say the move lacks transparency. Sen. Bob Corker (R-Tenn.) wrote a letter to Obama this week asking him to reconsider his choice.
“I strongly believe the intent of the Dodd-Frank legislation was to have the head of this bureau go through the nomination, vetting and confirmation process,” Corker wrote. “This particular position, one that was created just months ago, 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.”
Meanwhile, the top Republican on the House Oversight Committee, Darrell Issa (R-Calif.), lamented the president’s decision to exempt Warren from congressional review.
“By giving Professor Warren responsibilities at both the White House and the Treasury Department, he is undermining Congressional oversight while giving her substantive authority over the CFPB. This is unprecedented.”