Bureau of Financial Protection “Appointment” Goes to Massachusetts Consumer Advocate
This Boston bankruptcy attorney‘s blog has been pointing out Harvard Professor Elizabeth Warren’s effective work in getting Congress to establish the US Consumer Financial Protection Bureau (CFPB). The new agency, however, is a law yet to be implemented; there is no building, no employees, no new regulations. Today President Obama appointed Professor Warren to get the Agency started. True, it is not a “nomination” for the Senate to approve. But, in Washington these days, there does not seem to be a lot of cooperation, and with elections coming up, there is even less. Thus, it appears like an end run around politics to get something done: start up the agency to protect consumers.
Professor Warren said the following in an interview with Salon.com:
“This is an historic moment. The president has just signed into law the most powerful financial reforms in three generations. And, coming out of that, it will be necessary to build the real apparatus to make markets work again, to make them work for families, to make them work, frankly, whether they like it or not. To make them work for Wall Street, to make them work for financial institutions, ultimately to make them work for the real economy. It is a moment in which there will be great change and I am simultaneously worried about what could go wrong but deeply excited and even optimistic about what could go right.”
The new regulations to be implemented by the CFPB will be pro financial consumer and restrictive on banks and financial organization. Wherefore, according to reports in Newsweek, “bankers have lobbied hard to derail Warren’s nomination.” Nevertheless, our clients in Massachusetts would welcome some protections to prevent a future financial crisis. Let’s see what Professor Warren comes up with.