The Obama Administration has been steadily losing its luster in many areas, but perhaps nowhere more so than in the field of financial regulation, where leadership is more urgently needed than anywhere else. Today’s American Banker (proprietary content, unfortunately) carries a story, appropriately entitled “White House backs itself into a corner letting CFPB remain leaderless,” about the dilemma the Administration now faces as a result of its delay in nominating a director for the new Consumer Financial Protection Bureau (no word yet on a nominee for the Comptroller of the Currency either). Basically, the longer the Administration dithers on the nomination the stronger grows the grassroots support for the one candidate they seem most afraid to appoint.
Reading on and between the lines, industry, conservative, and Treasury Department opposition to the obvious candidate, Elizabeth Warren, is rabid and for the obvious reason that she would provide strong leadership for the CFPB. I don’t know Professor Warren personally, but I have spent a lot of time watching her on TV, reading her material and reports on behalf of Congress, hearing her talks in the academic world, and talking to those who do know her well. In my mind she is without question the right person to head the Bureau if, that is, we actually want someone who understands the business and is willing to stand up to industry pressure. This would be as obvious to anyone else who knows her as it is to Barney Frank, Chairman of the House Financial Services Committee. I am simply bewildered at the poisonous slander being circulated about Professor Warren by her enemies–rather like the trash talk that begins once a Supreme Court nominee is announced.
There is even ridiculous speculation now about the Treasury Department managing the bureau on an interim basis. (Remember, the bureau was located as an independent agency “inside” the Fed.) The density of foxes trying to get into this new hen house is staggering. The one thing I know from business experience is that this would be a hell of a way to run a railroad!
With its equivocation the Obama Administration, far from strengthening its position, is allowing “consultation” to undercut the very basis of its support. Financial reform required a lot of courage and this has been conspicuously absent over the past year, not only on the part of the Administration but also among many Congressional leaders. It is no wonder that so many have become so cynical about Washington DC.
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You may want to read this excellent article by Andrew Leonard in Salon.com
“Dodd vs. Warren shows that government is broken”
http://goo.gl/XH5e
Interesting take, to say the least.
This is a classic example of the power of politics and its influence. The delay may give credence to some concerns (on the Hill) that the Obama Administration appears to be anti-big business, instead favoring small businesses. Perhaps the lack of a decision is an indication that the administration has heard the concerns and they’re not trying to find balance.
As for your initial statement, “The Obama Administration has been steadily losing its luster in many areas”, Glenn Greenwald nails the underlying dynamic with his habitual mastery.
http://www.salon.com/news/opinion/glenn_greenwald/2010/08/27/krauthammer/index.html
His conclusion stating that it is very possible that the control of Congress return to the Republicans in November left me skeptic…until I look at data posted on Nate Silver’s blog fivethirthyeight.com
http://bit.ly/bSJ36j and this http://bit.ly/ajc7Ge
I couldn’t possibly agree with you more on this post. Although my endorsement means zilcho (I was labeled a “racist” on another blog recently) Paretocommons and Elizabeth Warren have my UNCONDITIONAL support. That in addition to the fact I refuse to vote for Obama if Professor Warren is not nominated. What gyrations in the cosmos that causes I can only guess. Here’s a Sunday morning toast of Gin and Dr. Pepper to that.
Saturday, damn, I did have too much.
See I can tell you are a sharp one like Miss Taub, you’re already looking/anticipating who will be the new Comptroller of The Currency. We know it will be an improvement by default, but nonetheless. How many Americans are looking at that now??? That’s why we’re in the s.h.i.t.hole we’re in.
Sorry, I can’t stop myself from commenting again. You know the two problems on Miss Warren’s resume or curriculum vitae or whatever the f they’re calling it this week? “Sincere and conscientious”. That’s always a killer on bank regulation jobs.
This is a depressingly accurate analysis. I can’t believe Obama is such a weakling, but where’s the evidence to contradict it?