CFPA

Elizabeth Warren in Obama Administration, Friend or Foe?

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Keep your friends close and your enemies closer? It appears either the Obama administration is doing a run around Congress or possibly muzzling Elizabeth Warren. Warren has been strongly desired to head the new Consumer Financial Protection Agency. Supposedly it would be difficult to get her confirmed in Congress. The Obama administration is hiring Elizabeth Warren as an assistant to the President, to de facto run the Consumer Financial Protection Agency claims The New York Times:

Elizabeth Warren, who conceived of the Consumer Financial Protection Bureau, will oversee its establishment as an assistant to President Obama, an official briefed on the decision said Wednesday evening.

The decision, which Mr. Obama is to announce this week, would allow Ms. Warren, a Harvard law professor, to effectively run the new agency without having to go through a potentially contentious confirmation battle in the Senate. The creation of the bureau is a centerpiece of the Wall Street financial overhaul that Mr. Obama signed in July.

Dodd Planning Vote on Financial Reform TODAY, Massive "Managers Amendment"

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Reform Ramrod! If you can believe this, they are planning on voting on Dodd's bill at 5pm EST. Attached is Dodd's manager's amendment. So, this is being introduced, no time to read it and they are going to vote this bill out of committee, now.

This is bad, we know the bill already has gapping holes on derivatives, which are labeled the swiss cheese derivative reform. Yet there is no time to read this latest amendment, and clearly the bill is just being ramrodded out of committee with no debate.

While of course Republicans are out to make it much worse, even Tim Geithner (of all people), thinks this bill is ineffective and is demanding real financial reform instead of a watered down bill:

CFPA Gutted by Democrats

The Consumer Financial Protection Act (CFPA) has been gutted by Democrats. Yesterday, the House Financial Services Committee, approved an amendment to exempt 98% nation’s banks from oversight by a new agency created to protect consumers from abusive or deceptive credit cards, mortgages and other loans. So, small banks and credit unions don't commit fraud or implement deceptive lending practices. Is there a proof or evidence of a correlation between size of a financial institution and its likelihood to implement fraudulent practices. I didn't know greed and recklessness was limited to financial conglomerates.