Elizabeth Warren isn’t sure of the security of the new Consumer Financial Protection Bureau, given the expected assaults on regulation of any kind with an emboldened Republican caucus after the elections. Nevertheless, she has begun to ramp up the agency, with the expectation of having it ready for action in less than a year’s time.
On a conference call, Warren outlined the new developments at the bureau, which last week moved into new offices in Northwest Washington. Warren expects the staff to quickly outgrow the 30,000 square feet of office space there, and have to transition to a more permanent office location. Previously, consumer protection regulators were spread across multiple agencies and never housed under the same roof.
Over 50 employees staff the embryonic CFPB at this point, with that number expected to double over the next two months. “We have already received more than 1,500 resumes,” Warren said. Many of the current staff members are detailees from agencies which previously had consumer protection responsibilities. Total employees should reach into four digits by the time the agency is fully functioning. It will transfer into the Federal Reserve by July 21, 2011.
Prior to that time, Warren has engaged in a notable amount of outreach, speaking with consumer advocates, minority groups, labor, credit counselors, investors, community bankers and even CEOs and trade association leaders (“I have spoken directly with 14 CEOs of major banks and eight heads of major Washington trade associations,” she said on the call). These listening and outreach sessions are designed to understand the biggest challenges in consumer financial protection, and also to advance a number of ideas that Warren has advocated since becoming the de facto head of the proto-agency in September. For instance, Warren told the Financial Services Roundtable about her preference for principles-based approach, with short credit agreements that would allow consumers to easily comparison shop, instead of drawn-out agreements that comply with a raft of disclosure regulations.
Warren was in Ohio for one of these listening sessions with consumer advocates two weeks ago, and this week she’s scheduled to give an address at Berkeley about the role of information technology in helping to “propel the agency forward.” Warren has made no secret of her desire to use data as a way to get consumers maximum, easy-to-compare information when making a decision on a mortgage or a credit card.
The agency will be robust and ready to go, then, next July, provided it can fend off political attacks. And Warren’s conception, and significant outreach to all aspects of the financial world, insulate the agency in some manner from those attacks.




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So, just as Warren leaves next July the CFPB will transition to being under the control of the Fed, which is the root cause of all of our financial problems anyway.
Ain’t progress and reform under the Dems and President Pinocchio great?
It’s not “under control” of the Fed. It’s an independent agency housed in the Fed with an independent budget and a director chosen by the President. There is no way the Fed can mess with the budget, and to the extent that anyone can dampen the CFPB rulemaking, it would be OCC and not the Fed. This thing isn’t the road to salvation or anything, but it’s a pretty nifty little agency.
I’d like to hear her speak out more on foreclosure fraud. It’s supposed to be a consumer PROTECTION bureau, not a consumer education bureau.
Yes, but doesn’t the SecTreas now have to sign off on everything she (the agency) proposes, and doesn’t that same veto power transfer to the Fed?
I mean, you can have all the independent budget you want, and be independently appointed by the Prez, but if you can’t make any rules or take any actions without someone higher up signing off, isn’t that a toothless charade?
Adding: I mean, why “house” the agency inside something like the Fed unless you want to put it under the Fed’s nose?
And BTW, are you aware that the edit function is disabled as soon as you press submit? I wanted to add the contents of my #5 to my #4 but the edit function went pink on me. (You can see that the time difference between the two posts is one minute, 3:18 t0 3:19.)
Tech team is aware of, and working on, the edit glitch.
Now there’s an analogy I can work with, much obliged Brother DDAy.
So if sparks erupt after July, will it be because her efforts at insulation failed? Will we then call for more control of these dangerous circuits?
If Warren, our contractor du jour, fails to solve the problems she’s been disabled from solving, I expect TPTB to pull victory from the jaws of this apparent defeat.
Look, you bleeding-heart liberals, we tried “consumer” protection (you can dream on about sovereign protection), and it didn’t work. Never mind that there was no way in hell on earth we’d let that uppity bitch score on us.
In our professional advice, it’s best that you just lay back and enjoy being pillaged, plundered, even literally raped, in the name of good governance.
I mean, that’s a nice credit score you got there, making affordable your very comfortable lifestyle. Too bad if something were to, you know, happen to it. Capische?
putting the agency in the Fed was Chris Dodd’s prelude to killing it. But Warren and her backers won the fight in Congress: the point of “independent” is that, in fact, no higher-up signs off on anything. The OCC would have to actively intervene and that power is more about pre-emption at the state level. You have no real reason to trust me or trust your government on this, but I can only repeat that people worked very hard to assure that this is not, in fact, a charade.
One advantage of placing the agency placed in the Federal Reserve is that its funded out of Fed earning and NOT congressional appropriation so it can’t be de-funded.
Whattya mean? The Fed can do anything it wants. It can shove the agency into basement offices with one phone line for the whole office, if that’s what it wants to do. Supplies can go missing, or accidentally get off orders to logistics. Travel can be curtailed, not authorized, etc. Reports can be stuffed in drawers during a “review” period that lasts indefinitely.
Do you really think the banksters than control the Fed are going to let that awful Warren bitch put the screws to them?
I can almost hear the emboldened, post-election wingnuts yammering about the “growth of the federal gubmint.”
We don’t need a loose cannon.
This agency will have 10,000 employees/goldbricks before it’s all over.
With Warren heading it, I’ll take 100,000 employees. Maybe we’ll get some real work done…up to and including criminal referrals for many and varied principals.
Terrific. I’m sure knowing that it’s up and running will be a great comfort to me under my bridge.
That’s excellent news at least. No way do Republicans get a filibuster/veto proof majority. Of course we are talking about Democrats here. Filibustering and vetoing wouldn’t be bipartisan.
Will she have a complaint hot line?
I would think it would take at least 500,000 employees to main those phones. ;-)
Off topic:
No word on if it has fully functioning human characteristics.
er, I meant MAN those phones.
You sure that’s not a picture of Christine O’Donnell’s brain? ;-)
Go get ‘em, Liz!
Well, this appears to be some good news, for a change. I just hope that Warren gets the agency fully functioning before she must leave it.
Not certain at all but we have to trust the author in this case.
Well, I suppose even a tiny skiff in an ocean of criminality is better than nothin.
Since this is a consumer protection agency, I wonder if Warren will ever address that POS idea of a consumer credit number scam, used to keep the unemployed from gaining a job, used to boost the cost of your car and home insurance and loan/credit card rates…
I am worried that it is like an oasis appearing in a parched desert. There will be so many who need a drink of its water after such a long drought that it might become unable to respond in a timely manner.
Be patient everyone.
http://blogdredd.blogspot.com/2010/10/fun-with-mystery-day.html
Ya know, I hadn’t thought about that, but you are right. It does need to be addressed. Not to mention that the credit scoring companies are privately owned ponzi schemers as well.
All the more reason to vote for Mickey.
My husband’s been on a small rant all morning about the push for people to not vote in order to punish those Democrats. He say’s punishment never works. Even the dog proves that to be true.
On a related note, anyone out there still buying the TARP was Wonderful fairy tale.
TARP Inspector General report says otherwise.
$40 billion here, $40 billion there and pretty soon you’re talking real money.
SO, when do the Home Loan FRAUD Prosecutions BEGIN?
You know, David, I have great respect and admiration for your energy and intelligence. But on this, you are just way, way too optimistic. Some might say delusional. Why do you think the very first thing that was taken off the table was TRUE independence for this agency?
Warren is intelligent, courageous, and has the right values. But it’s over for this “Bureau.” We are going through a period of the greatest consumer fraud in history, and Warren has nothing significant to say about it? Give me a break.
The most pressing problem for many is the “FORECLOSURE crisis” And like you pointed out seems like her immediate response should be about the FORECLOSURE crisis.
This like almost all other agencies will be a dud….you see how the WH “snailed” her appointment.It would be a miracle if this agency does any good .
That’s because he has to be. He has deep ties to the existing Dem party apparatus, and if Warren’s appointment can’t be seen as a huge victory, then there is absolutely nothing related to the Dem party that can be called a “victory”. (Unless, of course, you count the sham, watered-down charade “Audit The Fed” bill as a victory, which Jane does.)