May 24, 2011
– Written testimony from Elizabeth Warren
– Oral testimony from David S. Evans (Founder, Market Platform Dynamics)
– Watch video of hearing
– Additional written testimony from legal experts Todd Zywicki, Adam Levitin and more
House GOP members aggressively questioned Elizabeth Warren’s plans for the Consumer Financial Protection Bureau, her past congressional testimony and even her honesty during a hearing Tuesday entitled “Who’s Watching the Watchmen.”
Rep. Patrick McHenry (R-NC) labeled the CFPB a “super class of administrative elites.” Warren in a special role with the Treasury Department has been helping to organize the bureau ahead of its official opening this July.
“After that, McHenry accused her of hiding the truth the last time she went before Congress, when she said bureau staff had provided advice to state officials negotiating a settlement with mortgage servicers that improperly foreclosed on homeowners,” reports CNNMoney.
When asked by McHenry if she would accept a nomination to be CFPB director, Warren said it would be inappropriate to speculate on who President Obama’s pick to lead agency will be. McHenry then asked Warren to name her nominee but “interrupted her and said he understood she didn’t want to answer that,” according to CNNMoney.
CNN reports McHenry also brought up the memo the bureau compiled on mortgage foreclosures that included a note that it was to go to Attorney General Tom Miller, the Iowa attorney general in charge of negotiations with bank mortgage servicers.
“The congressman accused Warren of being a more central role in the talks than what she told a congressional panel in March,” reported CNN.
Warren replied that Treasury Secretary Tim Geithner had requested she arrange the material for Miller.
“This is our job, and we’re trying to do our job — to be helpful to other agencies,” Warren said. “And to help those agencies to hold those who break the law accountable for these deeds.”
McHenry and Warren couldn’t even find common ground on the length of her testimony. At 2:15 p.m. ET, McHenry wanted Warren to stay to answer additional questions from members of Congress. After having changed the time of her testimony that day from 2 PM to 1:30 PM and then 1:15 PM, Warren replied she had originally consented to testify for an hour and had a meeting scheduled for 2:30 p.m.
“Congressman, we had an agreement,” Warren said, according to the Los Angeles Times.
McHenry retorted, “We had no agreement. You’re making this up.”
The Los Angeles Times reports Rep. Elijah Cummings (D-MD) stepped in on behalf of Warren, arguing she should be able to make her appointment. McHenry consented after Warren said she would respond to written questions from the last two lawmakers.
CNNMoney reports Democrats later apologized to Warren for McHenry’s “rude” behavior.
“This hearing is all about impugning you, because people are afraid of you and your ability to communicate in very clear terms the threats to our consumers,” said Rep. John Yarmuth (D-KY).
Cummings also extolled Warren’s work and her efforts to organize the CFPB.
“There are people in my district who applaud what you are doing and may God bless you,” Cummings said. “Stay on the battlefield.”
In addition to Warren, expert witnesses at the House hearing included:
– David Evans (Chairman, Global Economics Group, and Lecturer, University of Chicago Law School)
– Todd Zywicki (Foundation Professor of Law, George Mason University)
– Adam Levitin (Associate Professor of Law, Georgetown University Law Center)
– Andrew Pincus (Partner, Mayer Brown Rowe & Maw LLP)
Click here to read their written testimony.
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