Warren out at CFPB after Issa hearing?

posted at 1:30 pm on July 16, 2011 by Ed Morrissey

Elizabeth Warren will exit the Consumer Financial Protection Bureau before it officially launches, according to a single-sourced Bloomberg report last night.  According to an unnamed “briefed” person, Obama will dump the controversial Warren for someone already working at the CFPB, and the announcement will come next week:

Elizabeth Warren, a Harvard professor, was appointed last fall by Obama to set up the consumer bureau until a director was named. Warren previously was head of the congressional watchdog panel overseeing the bank bailout.

This was one of those “temporary” assignments that an administration would eventually make permanent.  Warren, however, became a lightning rod not just for her approach to the CFPB but also for her interaction with Congress.  Called to testify in May, Warren insisted that the panel limit its questioning because of a prior engagement on her schedule.  The prior engagements appear to have been a couple of internal meetings — and an interview with Vanity Fair.

With Congressional relations off to that kind of start, it’s no wonder that Republicans in the Senate have already made clear that they wouldn’t allow Warren to be confirmed:

The consumer bureau, which is to begin formal operations on July 21, was established by the 2010 Dodd-Frank financial- regulatory overhaul to fill what lawmakers said was a gap in oversight of products whose abuse contributed to the 2008 credit crisis, including mortgages and credit cards.

The bureau’s director requires confirmation by the Senate. After 44 Republican senators announced in May that they wouldn’t vote to approve any candidate to run the bureau without changes in its structure, analysts said the White House might have to resort to a temporary appointment during a congressional recess. Sixty of the 100 senators are effectively required to vote for a nomination due to procedural rules.

It’s no surprise that Obama wants to look for a replacement for his lightning-rod initial choice, especially after Warren’s appearance at the House Oversight and Government Reform Committee this week.  Democrats tried distracting the committee by loudly demanding that Darrell Issa subpoena executives from large banks, but Issa instead focused on Warren and the ambiguous limitations on the CFPB’s power:

The hearing, called “Consumer Financial Protection Efforts: Answers Needed,” was supposed to look at the powers of the agency, which many Republicans hold in deep mistrust.

Issa, who said he wasn’t out to “micromanage” the bureau, which is housed in the Federal Reserve, but said he wanted to see if the agency was “properly designed and prepared.”

“The Federal Reserve is not transparent,” Issa said. “The Federal Reserve does resist any kind of congressional oversight and considers it unreasonable interference.” …

McHenry, on Thursday, said he wanted to know more about the types of financial products the bureau would target – insisting that those moves would cause uncertainty for investors and business leaders.

“I fear the actions by the Consumer Financial Protection Bureau that limit access to credit … would only further damage this troubling economy,” he said.

Bloomberg only offers the one, anonymous source for this story, which seems a little unusual — and weak.  Under the circumstances, the decision wouldn’t be a surprise, but normally media outlets like a second source before publication.  Either they trust this particular source more than most, or Bloomberg figures it’s inevitable anyway.

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What has she actually done to make her an expert on buisness?

rob verdi on July 16, 2011 at 1:33 PM

One less totalitarian.

petefrt on July 16, 2011 at 1:35 PM

Let’s hope it is true. No doubt the rest of the Obama pool of potential draftees and the nitwits already at CFPB all have the same brainless mindset, but every time we reject one of these idiots the world gets a little smarter.

Jaibones on July 16, 2011 at 1:37 PM

The consumer bureau, which is to begin formal operations on July 21, was established by the 2010 Dodd-Frank financial- regulatory overhaul to fill what lawmakers said was a gap in oversight of products whose abuse contributed to the 2008 credit crisis, including mortgages and credit cards.

I just started Reckless Endangerment, those two should be in Jail for their role.

rob verdi on July 16, 2011 at 1:37 PM

to fill what lawmakers said was a gap in oversight of products whose abuse contributed to the 2008 credit crisis

The lawmakers were actually the ones that caused this crisis. And they still don’t have any oversight.

Tommy_G on July 16, 2011 at 1:39 PM

Haven’t we seen enough to not confirm ANYBODY Obama wants?

golfmann on July 16, 2011 at 1:41 PM

Here’s a better idea. How about we just get rid of the entire Consumer Financial Protection Bureau and repeal that crazy Dodd-Frank bill?

Knucklehead on July 16, 2011 at 1:41 PM

McHenry, on Thursday, said he wanted to know more about the types of financial products the bureau would target – insisting that those moves would cause uncertainty for investors and business leaders.

“I fear the actions by the Consumer Financial Protection Bureau that limit access to credit … would only further damage this troubling economy,” he said.

And his first clue was…?

GrannyDee on July 16, 2011 at 1:42 PM

One less totalitarian.

petefrt on July 16, 2011 at 1:35 PM

She’s actually running for Scott Brown’s seat ’cause gosh darnit, MA needs her.

roy_batty on July 16, 2011 at 1:44 PM

OT, or not, it’s all Obamandias.

In order to fund Obamacare and the other opiates of Big Government dependency, the feds need to take 25 percent of GDP, now and forever: The “new normal.” It can’t be done. Look around you. The new normal’s already here: flat-line jobs market, negative equity, the dead parrot economy. What comes next will be profoundly abnormal. His name was Obamandias, King of Kings. Look upon his works, ye mighty, and despair. Round the decay of that colossal wreck, boundless and bare, the lone and level sands stretch far away.

Do they still teach Shelley in high school? Or just the “diversity manual” about “social justice” the Omaha Public Schools paid for with $130,000 of “stimulus” funding?

Schadenfreude on July 16, 2011 at 1:45 PM

What has she actually done to make her an expert on buisness?

rob verdi on July 16, 2011 at 1:33 PM

Don’t you know? She “studied financial markets and products” and taught bankruptcy law at Harvard. That’s the sum total of her experience. Her undergraduate degree is in psychology. She has never held a private sector job, nor a job in a regulatory agency.

The whole idea for the Bureau was hers, coming from a small article she wrote in Harvard magazine in 2007. So, of course, the idiots in the White House latched on to this idea and they wanted Warren to head the agency since she had dreamed it up in the first place.

rockmom on July 16, 2011 at 1:48 PM

Issa, who said he wasn’t out to “micromanage” the bureau, which is housed in the Federal Reserve, but said he wanted to see if the agency was “properly designed and prepared.”
“The Federal Reserve is not transparent,” Issa said. “The Federal Reserve does resist any kind of congressional oversight and considers it unreasonable interference

Fantastic, another Fed tentacle created by the Frank-Dodd Bank Protection Act; in the name of the helpless consumers

Firefly_76 on July 16, 2011 at 1:49 PM

What has she actually done to make her an expert on business?
rob verdi on July 16, 2011 at 1:33 PM

She’s a left-lib and therefore is an expert on everything.

Dr. Carlo Lombardi on July 16, 2011 at 1:51 PM

I just started Reckless Endangerment, those two should be in Jail for their role.

rob verdi on July 16, 2011 at 1:37 PM

I just finished it, and you are right! Believe me, that book only scratches the surface of the misdeeds of Congressional Democrats.

rockmom on July 16, 2011 at 1:51 PM

The lefty blogs will be in hyperdrive over this one.

Warren is some sort of hero to them.

It’s odd how ideologies – left or right and in between – rally around a person who they think personfies all that is “good” with them.

Make them larger than life figures.

SteveMG on July 16, 2011 at 1:51 PM

People like this bho wants in his team is a major reason that some r’s be in dc on a daily basis while the rest are on the hundreds of recesses per year. bho will just do a recess appointment, though temporary, to see his people are in.
L

letget on July 16, 2011 at 1:51 PM

Issa is fast becoming one of my BFFs.

I hope he has sent the printer an order for blank subpoenas by the hundreds. He’ll use them all up with this administration.

2010 was one of the most important—if not the most important—elections of our lifetime. The House is giving us some brakes on the rampant power grabs.

INC on July 16, 2011 at 1:53 PM

One less totalitarian.
petefrt on July 16, 2011 at 1:35 PM

And a thousand more lined up behind her waiting for their turn.

rrpjr on July 16, 2011 at 1:54 PM

This is important, by the way. The new powers Congress gave the CFPB can only be exercised by the Director. So, until a Director is confirmed, the agency can only exercise the powers that were transferreed to it from the Fed and HUD, which are minor rulemaking authorities. Republicans insisted on this, as well as making the CFPB part of the Fed. Frank and Dodd’s original bill made CFPB a completely independent agency with powers that did not depend on having anyone confirmed by the Senate in charge of it. It pretty much completely abdicated any Congressional oversight of the agency. At least Republicans were able to get a few amendments to make it somewhat more accountable.

rockmom on July 16, 2011 at 1:55 PM

Elizabeth Warren, a Harvard professor,

That puts her at the top of the appointment list for The Chicago Jesus.

Does he appoint anyone to any position that ever had a real job? Uh, no.

Tim Zank on July 16, 2011 at 1:56 PM

SteveMG on July 16, 2011 at 1:51 PM

The organized Left really hasn’t gotten very much it wanted out of this Administration, especially when it comes to financial regulation. So they have rallied around Warren. Her nomination is sort of the last hill they are dying on.

rockmom on July 16, 2011 at 1:56 PM

This is the organization, that in the name of Wall Street reform, will receive information on every check or ATM use by every citizen since those parent financial institutions is under its review.

amr on July 16, 2011 at 1:57 PM

Here’s a better idea. How about we just get rid of the entire Consumer Financial Protection Bureau and repeal that crazy Dodd-Frank bill?

Knucklehead on July 16, 2011 at 1:41 PM

That might save some money so they will never do that.

darwin-t on July 16, 2011 at 1:57 PM

The thugs worked this panel in good.

Following the introduction of the legislation, Congress would have to pass the joint resolution with a supermajority of sworn members by August 15 of the same year. “If you don’t do that,” Cohen says, “Congress has no option, at all, to repeal the board.” Meanwhile, even if the board were successfully dissolved, IPAB would keep issuing its recommendations, which would still have the force of law, until 2020.

The protections erected around IPAB make it all but impossible to repeal. “We kind of joke about that,” says Cohen, “the idea that the whole bill comes down but the only thing that stays is IPAB, like the roach after the nuclear blast.”

Schadenfreude on July 16, 2011 at 2:01 PM

From pbs.org, this kiss-up bio says it all:

Professor Elizabeth Warren joined the faculty of Harvard Law School in 1992 as the Robert Braucher Visiting Professor of Commercial Law and became the Leo Gottlieb Professor of Law in 1995. She is the coauthor of ALL YOUR WORTH, just published in March and on the best-seller list. Her earlier book, THE TWO-INCOME TRAP: WHY MIDDLE CLASS MOTHERS AND FATHERS ARE GOING BROKE has been cited by senators and presidential candidates, and her earlier award-winning books include AS WE FORGIVE OUR DEBTORS: BANKRUPTCY AND CONSUMER LAW IN AMERICA, THE FRAGILE MIDDLE CLASS, BUSINESS BANKRUPTCY, and three leading casebooks.

Warren is the Vice-President of the American Law Institute and is on the Executive Committee of the National Bankruptcy Conference. She directed the National Bankruptcy Review Commissions study of federal bankruptcy laws and drafted its report to Congress. Chief Justice Rehnquist appointed Professor Warren to the Judicial Education Committee of the Federal Judicial Center from 1990 to 1999. The National Law Journal named her one of the Fifty Most Influential Women Lawyers in America. Harvard students voted her the Sacks and Freund Award for teaching excellence.

Prior to teaching at Harvard, Professor Warren was the William A. Schnader Professor of Commercial Law at University of Pennsylvania School of Law and also taught at the University of Texas School of Law, University of Houston Law Center, University of Michigan and Rutgers Law School. We look forward to Ms. Warren’s commencement speech as she highly regarded not only as an academic and a legal scholar, but also as an inspiring and entertaining speaker.

kingsjester on July 16, 2011 at 2:07 PM

You guys just don’t understand. Academics are so much smarter than us. They can solve all the world problems in five minutes during discussions at the faculty club.

Do I need to add the sarcasm tag?

Special Forces Grunt on July 16, 2011 at 2:12 PM

SWEET!

Bye, Biatch.

Now, defund the agency

Key West Reader on July 16, 2011 at 2:13 PM

Ms. Warren, what in your history qualifies you for this position?

“I’ve had a checking account for most of my life, and I’m really good with coupons…love those double coupon days at Giant.”

BobMbx on July 16, 2011 at 2:13 PM

Schadenfreude on July 16, 2011 at 2:01 PM

I think there is some precedent that says a prior Congress cannot bind a future one this way.

It may also be possible to repeal Obamacare through the budget reconciliation process, which only requires 51 votes in the senate, and no cloture. Just like it was passed. SCOTUS would never go near a poitical question like that, and up hold Obamcare.

Wethal on July 16, 2011 at 2:21 PM

Want to guess that from now until January 20, 2013, there will not be a ocmplete recess of Congress, so the One cannot do recess appointments?

No doubt Boehner can get a few patriots to work through each vacation.

Wethal on July 16, 2011 at 2:22 PM

I work in the financial industry and to say that the higher ups have been scared shi’ite less about this woman would be an understatement. This is extremely good news!

Rogue on July 16, 2011 at 2:23 PM

One has to wonder how many Communist are now working in the Federal Government. How many commies have high level positions in our government? For that matter is the Democrat party just a front group for Communist party?

Kjeil on July 16, 2011 at 2:24 PM

I just started Reckless Endangerment, those two should be in Jail for their role.

rob verdi on July 16, 2011 at 1:37 PM

I just finished it, and you are right! Believe me, that book only scratches the surface of the misdeeds of Congressional Democrats.

rockmom on July 16, 2011 at 1:51 PM

Great book, it should be required reading. Unfortunately, few people read non-fiction books. It needs to be made into a documentary, and put on Youtube and run on TV ad nauseum until November 2012.

iurockhead on July 16, 2011 at 2:24 PM

It was all about framework. They don’t run the framework they just lay it down. Everything O and minions have been doing is to set up framework.

They know they will be gone and in reality all they can leave is framework that will last 50 years as people become dependent on the work that the frame provide. Medicare, Medicaid, now Obamacare is all framework that will last and has last decades and can never be undone in it’s entirely even with full repeal as there is framework that they are built on that people don’t even know was laid decades ago just to lay the new other framework on will remain.

The total framework in regulation and plans laid by Ms Warren will never be known. And in the next time the Democrat or the left republicans get in power that framework can be built on to end and do whatever they want. And people would wonder how did that happen. It was decades in the making.

tjexcite on July 16, 2011 at 2:25 PM

Warren eventually told the committee that the bureau is designed to help consumers answer whether they can afford something, and whether it was the best deal for them.

Why in the world do we need a bureau to help consumers understand if they can afford something?

Notorious GOP on July 16, 2011 at 2:25 PM

Those who can’t, teach.

Man has this administration proved that.

Speakup on July 16, 2011 at 2:26 PM

For that matter is the Democrat party just a front group for Communist party?

Kjeil on July 16, 2011 at 2:24 PM

Is that a rhetorical question? Pretty obvious “yes.”

iurockhead on July 16, 2011 at 2:26 PM

“Warren eventually told the committee that the bureau is designed to help consumers answer whether they can afford something, and whether it was the best deal for them.”

Why in the world do we need a bureau to help consumers understand if they can afford something?

Notorious GOP on July 16, 2011 at 2:25 PM

Because as Secretary of Energy Cho said recently, people have to be steered away from or prohibited from making choices that are bad for them….or for the Greater Good.

The sheeples’ betters know better.

Wethal on July 16, 2011 at 2:29 PM

Those who can’t, teach indoctrinate.

Man has this administration proved that.

Speakup on July 16, 2011 at 2:26 PM

FIFY! :-)

sicoit on July 16, 2011 at 2:30 PM

What has she actually done to make her an expert on buisness?

rob verdi on July 16, 2011 at 1:33 PM

How dare you! She’s a Hahvahd professor you know.

David Mamet says that an intellectual is a person who’s not aware that he doesn’t know anything.

slickwillie2001 on July 16, 2011 at 2:30 PM

Is it a wonder why our economy is in the tank with people like this put in positions of power to try to socially engineer the free market system…?

Seven Percent Solution on July 16, 2011 at 2:31 PM

I’m going to miss her. I’ve always had a soft spot for the Naughty Librarian look.

Mason on July 16, 2011 at 2:36 PM

In arguing against the House measure to bring back the Edison bulb, Dr. Chu said: “We are taking away a choice that continues to let people waste their own money.”

Warren, and the entire Obama administration have the same nanny state philosophy as Nanny Bloomberg:

“You’re too foolish to handle your finances, your health insurance, your calorie count, your transfats, your choice of light bulb, your choice of toilets, your choice of your car’s MPG…”

The one area in which the lefites do argue for “choice” is, of course, in sexual matters, which are “private.”

Wethal on July 16, 2011 at 2:38 PM

I’m going to miss her. I’ve always had a soft spot for the Naughty Librarian look.

Mason on July 16, 2011 at 2:36 PM

Yeah, but our Dirty Librarian is better looking than their Dirty Librarian.

BobMbx on July 16, 2011 at 2:38 PM

No doubt Boehner can get a few patriots to work through each vacation.

Wethal on July 16, 2011 at 2:22 PM

Pro forma sessions work well for this.

BobMbx on July 16, 2011 at 2:40 PM

She’ll have a cush job at Goldman-Sachs to ease her exit back into the ‘private sector’ probably.

Can you say revolving door or cronyism?

JimP on July 16, 2011 at 2:43 PM

Dodd-Frank oversight. This phrase belongs in Webster’s under oxymoron.

Freelancer on July 16, 2011 at 2:48 PM

She’ll have a cush job at Goldman-Sachs to ease her exit back into the ‘private sector’ probably.

Can you say revolving door or cronyism?

JimP

Nah. More likely a job with one of George Soros’ scores of “non-profit” agencies like Media Matters.

honsy on July 16, 2011 at 3:04 PM

She looks like Jay Richards.

mydh12 on July 16, 2011 at 3:33 PM

Ed, it’s likely Warren’s demise has a lot to do with Obama’s fundraising efforts with the bankers. He has been skewering them at every turn in the road for his own political benefit. They are fed up. Warren’s recess appointment would doom any bridge building efforts.

With his numbers tanking and a real contest looming in 2012, Obama can’t afford any more enemies.

Corky Boyd on July 16, 2011 at 3:47 PM

Having hired PhD’s with track records, engineers and other technical skill sets, it seems Obama hires friends and hires for loyalty.
He doesn’t hire people with track records of relevant accomplishments. Of course he is a loyal socialist with no skill set other than bloviating.

seven on July 16, 2011 at 3:51 PM

So what did Warren do IN THE REAL WORLD before landing this job?

Besides being a ‘professor’?

GarandFan on July 16, 2011 at 3:57 PM

I just started Reckless Endangerment, those two should be in Jail for their role.

rob verdi on July 16, 2011 at 1:37 PM

And they should be sharing a cell with Jim Johnson, Franklin Raines, Jaime Gorelick, Maxine Waters, and a few dozen other Democratic crooks and thieves who nearly took down our entire economy with their greed and corruption.

AZCoyote on July 16, 2011 at 4:05 PM

She basically gave Congress and the American peole a f’ off for a stupid interview with a stupid magazine????? She should have been fired right then and there for that kind of crap.

Could anyone else be that way with their boss, and keep their job?

capejasmine on July 16, 2011 at 4:13 PM

The prelude to the full repeal of the Dodd Frank fiasco.

Key West Reader on July 16, 2011 at 4:37 PM

AZCoyote on July 16, 2011 at 4:05 PM

You can’t speak against Maxine Waters. That would be. Racist!

/Racist!

Key West Reader on July 16, 2011 at 4:38 PM

So what did Warren do IN THE REAL WORLD before landing this job?

Besides being a ‘professor’?

GarandFan on July 16, 2011 at 3:57 PM

She spent time with George Romney.

Key West Reader on July 16, 2011 at 4:48 PM

Warren eventually told the committee that the bureau is designed to help consumers answer whether they can afford something, and whether it was the best deal for them.
Why in the world do we need a bureau to help consumers understand if they can afford something?

Notorious GOP on July 16, 2011 at 2:25 PM

The required lobotomies on page 9999999999 of obamacare.

tinkerthinker on July 16, 2011 at 5:30 PM

Knucklehead on July 16, 2011 at 1:41 PM

+ One Trillion.

Cindy Munford on July 16, 2011 at 5:52 PM

Kjeil @ 2:24 PM

Not sure what the relationship is between the communist party and Obama/democrats, but when the communist party openly supports the American president, there might be a problem.

GOOGLE: Does the communist party endorse Obama and the democrats. Scroll down and be amazed.

volsense on July 16, 2011 at 6:00 PM

Bloomberg has lately evolved into a Democratic news organ. An apologist for Obama and his policies, it is becoming increasingly unreliable as a neutral news source. But likely more reliable as a test site for WH press releases or memes.

pat on July 16, 2011 at 6:07 PM

Warren, being a professor from Harvard, is illiterate in the business world. Small business is dying and incompetence from the Harvard elites is making it worse.

volsense on July 16, 2011 at 6:12 PM

…controversial Warren for someone already working at the CFPB…

There never was an actual director for this position.

Warren, was an acting ASSISTANT Director, who was ‘filling in for the Director in some undefined capacity.

Now, Obama is going to have an unappointed person, one that was hired by Warren, ‘take charge’.

CAN anyone in congress even request hearings from this person? Since this is now the ‘hired’ civil service person, do they even take responsibility for anything that the new agency is doing? I suspect none of this is in their job description and Obama will NEVER actually nominate, or appoint, anyone to the actual Director or Assistant Director positions.

Much easier to avoid those pesky congressional hearings if you have an agency with no one in charge. Well, I guess they could try to ask Bernanke about it, but he would likely just point fingers at the congress he hates and the Obama administration he protects.

Freddy on July 16, 2011 at 7:57 PM

It should be quite clear to anyone who has been paying attention for the last three years that there is NOBODY in the Fed or Treasury who knows anything about how the economy works: they are all a blathering bunch of field-proven incompetents!!!

I say cut their legs off: forbid them and their agencies from doing anything to anybody!!! Make them leave us completely alone, and cut their budget 25%-40%. Then it won’t matter who Obama appoints.

landlines on July 16, 2011 at 9:33 PM

We Republicans better watch what we wish for. Once out of DC, Warren will be free to make her Senate run against Scott Brown in MA. And she will probably win in that ultra liberal state, as many have become disenchanted with Scott Brown.

The Good Doctor on July 16, 2011 at 11:31 PM

The Good Doctor on July 16, 2011 at 11:31 PM

Yeah, but she’ll have to beat Setti Warren…a Moonbatty Mayor of a Moonbat town. He’s like mini Obama squared. He’s like a junior Deval Patrick. The peeps of the town fell all over themselves to vote for him just because he is black. And like his Super-Pappy Zero, he’s only been Mayor for like 2 years!

Scott Brown is gonna get booted. The Dems in Mass are NOT gonna be caught with their knickers down again. And besides, those of us who are Conservative will be voting for no one or a Dem who has the guts to put a D after his name.

We just can’t be helped here. Sorry.

Gob on July 17, 2011 at 12:37 AM

It would have been better to drive a stake through her heart, stuff her mouth with garlic, cut off her head, and burn the remains – although the idea of hanging her and other traitors along the banks of the Potomac to serve as a warning to others has much merit – all after a fair trial, of course.

This foul marxist whore should not be allowed anywhere near a policymaker, even to share an elevator.

Adjoran on July 17, 2011 at 3:38 AM

We have all kinds of Agency’s watching to “protect” us. My question is: Who is watching the watchers????

old war horse on July 17, 2011 at 9:28 AM

I’d rather entrust the government of the United States to the first 400 people listed in the Boston telephone directory than to the faculty of Harvard University.
William F. Buckley, Jr.

Being proven more correct every day of this administration…

stvnscott on July 17, 2011 at 11:12 AM