May 6, 2011
The Consumer Financial Protection Bureau is arguably becoming a more divisive issue in Washington than even healthcare reform. OK, that might be a bit of an exaggeration, but both advocates and adversaries regarding the agency’s structure and potential director Elizabeth Warren have been growing increasingly more vocal.
Several organization who advocated for the creation of the CFPB but refrained from supporting a particular directorial candidate are now calling for President Obama to pick nominate Elizabeth Warren, according to the Wall Street Journal.
Americans for Financial are now urging a recess appointment for Warren, meaning Obama could pick her to lead the agency without the Senate’s approval.
“We urge the president to stand up to this bullying, to swiftly nominate Professor Warren to lead the Consumer Bureau, and to make a recess appointment if the Senate refuses to act,” said Lisa Donner, executive director of Americans for Financial Reform, in a statement Friday.
Public Citizen also came out in support of Warren this week.
“The Senate Republicans’ strategic gambit likely leaves Obama no choice but to appoint a CFPB director during a Senate recess,” said David Arkush, director of Public Citizen’s Congress Watch division. “It also leaves him no reason to appoint anyone but the strongest candidate: Elizabeth Warren.”
On Thursday, 44 Senate Republicans declared in a letter to President Obama they wouldn’t back any CFPB appointee until the agency is revamped so that its funding is subject to increased Congressional oversight.
“We will not support the consideration of any nominee, regardless of party affiliation, to be the CFPB director until the structure of the Consumer Financial Protection Bureau is reformed,” they wrote.
Consumer advocates claim Republicans are simply attempting to lessen the agency’s regulatory powers, reports the Wall Street Journal. If no director is appointed by the CFPB’s July 21 launch date, the Dodd-Frank financial reform bill mandates that the agency’s authority be restricted.
Meanwhile, Fox Business News’ Charlie Gasparino reports that the Obama camp is “calling on banks, prodding them” to back Warren’s nomination.
“Sources tell FOX Business the White House is having an uphill battle getting the support and the reason is because Warren has says some negative things about banks in the past,” reports the news outlet. “The White House will not deny our report.”
Many opponents of the Consumer Financial Protection Bureau scored a victory this week when a House Financial Services subcommittee, in a mainly partisan decision, approved a trio of bills that would limit the new agency’s regulatory powers.
The three bills that seek to limit the CFPB’s regulatory scope are scheduled to be reviewed by the entire House Financial Services Committee on May 12.
House Subcommittee Gives Nod to 3 Bills That Reduce CFPB’s Authority
ABA Head Says He Would Support Warren Nomination
Major Consumer Groups Protest Bills to Alter CFPB
Obama Will Nominate Warren Soon, Predicts ICBA President
Warren Fires Back at CFPB Opponents: Bills Will “Defang” Agency
Jon Stewart Welcomes Elizabeth Warren on “The Daily Show”
An Inside Look at Warren’s Meeting Schedule
Geithner Says CFPB Director Nomination Could Still Go to Warren
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