It’s Official: Warren To Help Lead New Consumer Protection Agency

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.”

SEC Chair Expects Commission To "Hit The Ground Running"

By Sarah Mamula - Talk Radio News Service

With the signing of the Dodd-Frank reform bill last week, Securities and Exchange Commission (SEC) Chair Mary Schapiro said Tuesday that massive reforms on Wall Street will soon start to take affect. Schapiro said the commission will “hit the ground running” as it prepares to tackle close to 100 new regulatory rules.

Schapiro said that the commission plans to move forward by incorporating the input of the public and by ensuring transparency is established.

“The idea is to offer maximum opportunity for public comment and to provide greater transparency,” said Schapiro.

The SEC Chair said interested parties will be able to offer their ideas on financial regulatory laws through emails, comments and scheduled meetings with the SEC staff. 

“We are determined to do this right,” said Schapiro.

Schapiro said the SEC plans to work on provisions including broker-dealer standards, transparency of corporate financial information and ensuring hedge fund advisers are registered with the commission.  The SEC Chair said this would ultimately allow the commission to track the private funds these professionals advise. 

Schapiro also said the agency is “energized” and prepared to implement provisions of the new financial regulatory bill, but has also asked Congress for approximately 800 more staffers to take on the job.

“Our goal is a high quality regulatory regime in the United States,” said Schapiro. “We do expect that we can show leadership in a lot of these areas.”

President Expects More From Senate Before August Recess

President Barack Obama told reporters Friday that despite the obstacles that were overcome this week and the changing progress that was made, he hopes the Senate will act swiftly in passing a small business bill before Congress’ August break.

“I hope we can now finish the job and pass the small business jobs plan without delay and without partisan wrangling,” President Obama said.

Earlier this week the Obama administration accomplished its second major legislative victory of the year after the president signed the Dodd-Frank Wall Street Reform and Consumer Protection Act, essentially overhauling the financial regulatory system.

In addition to financial reform, the Obama administration is celebrating the extension of unemployment benefits, renewing them for  2.5 million jobless workers can receive while they look for work.

What is evidently a week filled with progress and change, President Obama said he hopes the Senate has a little more energy to pass a small businesses lending bill before the upcoming recess.

“Our goal is to make sure that people who are looking for a job can find a job,” he said. “That’s why it’s so important for the Senate to pass the additional steps that i’ve asked for, to cut taxes and expand lending for America’s small businesses, our most important engine for hiring and for growth.”

The small business bill will set up a new lending fund that will allow community banks to help local entrepreneurs and will more than double the size of loans these businesses can pull out.

“A small business jobs bill that contains these measures may come up for a final vote in the Senate in the next few days,” Obama said.

Bernanke: Financial Reform Should Prevent Further Crises

By Brandon Kosters - Talk Radio News Service

Ben Bernanke, Chairman of the Board of Governors of the Federal Reserve System, believes that the Wall Street Reform bill signed by President Obama this morning will serve the public by giving regulators more power to respond to firms in danger of collapsing.  Bernanke said that the bill, coupled with other regulatory standards for the bank capital, will “place our financial system on a sounder foundation and minimize the risk of a repitition of the devastating effects of the past three years.”

Republican Moves To Block Creation Of 'Minority Office Of Inclusion'

By Brandon Kosters-Talk Radio News Service

During a conference committee meeting on Wall Street reform Tuesday, Representatives Maxine Waters (D-Calif.) and Ed Royce (R-Calif.) engaged in a heated debate over the Republican's proposal to remove a section of the bill authored by Waters aimed at establishing the "Minority Office of Inclusion" to assess the diversity policies and practices of banks and credit unions.

Royce said that Waters' language would further politicize credit allocation and divert regulator's attention away from "systemic risks [and] safety and soundness questions" toward "racial and gender lending" when inspecting banks and credit unions.

Waters said that the Office of Minority Inclusion would only offer assessments and would not hold an enforcement role.

Royce's amendment was rejected by a vote of 10 to 6.

Sen. Bob Corker (R-Tenn.) later proposed an amendment outlining that no action would necessarily be taken based upon the office's assessments. Corker's amendment was unanimously approved.