Hurdles for Warren in Agency Launch

[Frank Booth]

Source: Wall Street Journal

Elizabeth Warren faces logistical, legal and political challenges as she attempts to build credibility for the new Bureau of Consumer Financial Protection.

President Barack Obama on Friday named Ms. Warren, a Harvard Law School professor and outspoken critic of many banking-industry practices, to senior posts in his administration, where she will play a lead role getting the agency up and running by July 2011. That is when it is supposed to be independent of the administration, responsible for writing and enforcing consumer-credit rules.

The new agency is a central plank of the Dodd-Frank financial-overhaul law that passed in July, and it will have the authority to examine some of the country's biggest banks, such as Citigroup Inc., Bank of America Corp., and J.P. Morgan Chase & Co.

But there could be constraints on her power. Because Ms. Warren won't be serving as the agency's first director, she may have to leave when it is set up. She also could face legal challenges if she attempts to write rules or guidelines during her tenure, as the law suggests only the "director" of the agency has this authority.

Read more: http://online.wsj.com/article/SB10001424052748703904304575497762403744260.html?mod=igoogle_wsj_gadgv1&

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Looks like this will be the Republicans'/Blue Dogs'/Wall Street's line of attack.

[DJ13]

1. If Im not mistaken it was setup so that Geithner was director until a vote on a replacement

I imagine thats why Obama had to set her up as an adviser, giving her the ability to set it up with Geithner as the front man while Congress diddles with themselves.

[Frank Booth]

4. You're right. I just found this:

"The CFPB is an independent executive agency established in the Federal Reserve. The authorities of the CFPB took effect upon Enactment, and the Secretary of the Treasury is authorized to perform the functions of the CFPB until the Director is confirmed by the Senate." http://www.dwt.com/LearningCenter/Advisories?find=311213

So, I guess if Geithner signs off on everything Warren suggests there won't be any problems. That could be a big "if", though.

[DJ13]

6. Yeah, its that "if" that has me worried

I dont trust him when it comes to regulating his buddies in the banking industry.

[bluestateguy]

2. This is a pee in my Wheaties story, so I am unreccomending it

nt

[Ruby the Liberal]

3. You would rather be blindsided?

Rec'd. We need to know what these guys and their legal squadrons are up to.

[asjr]

5. She is not even halfway out of the gate and this sort

of thing is already out there. Dodd is probably behind it.

[Frank Booth]

7. Could be. I hope it's not Geithner or his boss Summers, though,

because Geithner has the direct ability to quash anything Warren suggests.

[ProSense]

8. Absolute garbage

"Elizabeth Warren faces logistical, legal and political challenges"

What nonsense. The GOP media trying to create another false perception.

The President appointed Elizabeth Warren was to set up the agency. She is the interim head. Period.

[Demit]

10. No, she is not the interim head. Geithner, as Sec of the Treasury is.

That is how the bill was written. Until a Director is nominated & approved by the Senate, all powers of the new bureau are in the hands of Treasury. Warren was appointed to set the bureau up, and she will have some powers in that capacity, but not all. It's not spin, or perception, it's statutory language incorporated into the FinReg Bill.

[Doctor_J]

9. Another package of rubbish from the Murdoch Journal

I can't believe this shit is allowed at DU

[russspeakeasy]

11. In 3 months you won't be able to find her...in 6 months no one in

the White House will be able to tell you where she is, except,
"that she is on top of things and doing a wonderful
job..."
Tim doesn't want her and Tim gets his way...

[girl gone mad]

12. Brooksley Born v2.0