While continuing to try and repeal the Affordable Care Act, victorious Republicans can be expected to try to repeal or at least de-fund Wall Street reform. Central to those efforts will be to kneecap the Consumer Financial Protection Bureau. And there’s at least some evidence that they might have help from the inside.
Zach Carter speculates on a couple recent developments that the Treasury Department is at best making Elizabeth Warren’s job more difficult, and at worst actively undermining it. Two small Politico items set the stage for this concern:
The Politico pieces have been petty, but there’s no doubt they both came from Treasury. On Oct. 12, Politico ran a piece featuring this anonymous nugget (among others):
Some at Treasury grumble that Warren, in her early memos, spent much time detailing what press she was going to do . . . rather than the nuts and bolts of setting up an agency.
Then yesterday, in Politico’s Morning Money column:
NEW PAINT JOB – We also hear that while Warren is out west, her Treasury office is getting a makeover (Warren will have digs both at Treasury and the CFPB’s L Street headquarters). That’s something of a rarity for Treasury officials, who usually leave their offices as-is. There is much internal debate as to exactly what color it is that is going up on Warren’s walls. One person called it “Arizona sunset,” another “terra cotta.”
Both of these represent the kind of meaningless, issue-free pseudo-news that serves as Politico’s bread-and-butter. The actual complaints themselves, of course, are preposterous. Warren is painting her office and making media appearances—exactly the sort of things you’d expect the head of a new federal agency to be doing during her first weeks on the job. But look at the frame Treasury is putting on the stories. In both, Warren is portrayed as an ego-centric fluff-monger, not a serious policymaker. Look at fancy Elizabeth Warren painting her office! Our humble boss Timothy Geithner would never do such a thing!
By the way, you can see very clearly in this video, taken in Warren’s office, that there’s no paint job of any sort. But there’s definitely a profile being painted here.
It’s not clear whether this is some official policy or just a few angry Treasury staffers lashing out. But you have to take into account the New York Times hit piece against Raj Date to get the full context here. Many reform advocates are concerned that something larger is afoot, and that Treasury may have been behind the Date article. The article itself got basic facts wrong, according to the company Date used to work for, and generally represented a failed attempt to smear Date and the agency.
Warren knows very well that there are forces who want to kill the agency, and I don’t think she’s so naive to think that none of those forces come from down the hall. She has undertaken a public relations strategy to insulate the bureau, and it’s working in one sense to get favorable press. But she probably cannot shoulder the burden alone. Mike Lux writes:
All the passion so many people are showing makes it all the more galling to have certain as yet to be found out people in the Treasury department, people who owe their jobs to all of you who worked so hard to get President Obama elected in 2008, stabbing us all in the back in the very last days of this campaign [...]
I have always told people that working in the Clinton White House, I met some of the best people I have ever known and some of the worst. There are people who are in government for all the right reasons, because they want to make the country a better place and really help improve the lives of regular people. Elizabeth Warren is one of the very best of that group. And there are people who are in government because they are looking to brownnose the industries they are supposed to be regulating so they can get a really high paying lobbyist job after a few years in government. It is very clear that some of the people in Treasury, certainly the people doing these absurd attacks, are in the latter category. They don’t care about screwing over the President and the Democratic Party in the days before the election, and they certainly don’t care about helping consumers. What they care about is sucking up to the Wall Street bankers who they hope will give them a sweet job sometime soon.
I have a message for the leakers at Treasury, though: you are playing with fire. The two people closest to the President at the White House, Pete Rouse and Valerie Jarrett, are huge fans of Warren, and I know these leaks have caught their attention. I would love to see a serious investigation into these leaks once the election is over, and it just might happen. And whatever happens on the inside, the entire progressive community- bloggers, members of Congress, labor and consumer organizations- have Elizabeth Warren’s back. Right now, unlike you leakers, we are focused on winning elections, but after the election, we will be gunning for you.
Expect this to heat up over the next several weeks.




11 Comments

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Elizabeth Warren is one very dangerous person since she seems to–gasp!–care about the American people. Her opposition, in contrast, seems to care about enriching themselves and their masters at our expense.
I’m not sure how much this matters, given that neither Warren or Geithner has rulemaking authority under Dodd-Frank until a director is confirmed by the Senate (which I doubt will happen — why would Republicans approve any director?). Unless Obama recess appoints someone before January, the agency might very well be dead.
It matters plenty, and it’s setting the tone now. Whoever these leakers are is trying to damage Warren from Day 1; in that sense, it’s Rovian.
I completely agree with Lux that whoever pulled this sh*t attempting to smear Warren is playing with fire. Here’s hoping that after the election, Rouse and Jarrett go gunning for them, if only to keep Obama’s back. Whoever is pulling this sleaze is damaging the President, and anyone who can’t see that is a moron.
I don’t mean that you are a moron, ericj115 — I mean that in my view this is very much about power; whether Warren will have it, and how that will reflect on Obama.
Politically, this agency can’t ‘die’.
It’s only going to grow in importance in coming months as increasing info about the depth and monstrosity of the mortgage fraud (which will then bleed into the credit card fraud, etc, etc) is revealed. With 50 AGs going after it, with the economy tanking, there’s only going to be growing passionate support for what Warren is trying to achieve.
This agency is only going to become more significant, which is why the idiots smearing Warren have really ‘stepped in it’. What an unbelievably stupid move on their part. They seem to think their future lies in Wall Street; wait a year or so and see how that turns out.
Whoever smeared Warren is locked into historical thinking; they can’t build the economic infrastructure that we need moving forward. I hope someone fires their asses for this one.
It’s quite obvious to me that Geithner is behind this. He’s a hard nosed guy who’s made no secret of wanting to install his deputy Michael Barr as head of CFPB.
Oh don’t get me wrong — I agree that it is disgusting. I’m just saying that unless Obama recess appoints a director before January, the agency will probably be powerless for years, so she wouldn’t be very effective anyway. I hope I’m wrong.
The problem is that if the agency has no rulemaking or enforcement authority, it is essentially powerless. Republicans aren’t about to approve any director in the Senate, so I can’t see where Warren gets to where she wants the agency to go. It won’t grow politically if it has no power and is therefore perceived as completely ineffective, and even if it did, without power it wouldn’t matter.
Until a director is recess appointed or confirmed, we may as well not have an agency. And Obama’s window for recess appointing will likely close after December.
The Senate will most likely be in pro forma sessions until the new congress is convened. I don’t think Obama will ever be able to make another recess appointment (so much for keeping the powder dry).
seems to me that Warren is exactly the sort of person that O does not want in his administration. his appointment of Warren to this non–position makes that clear. If he wanted Warren around, he would have appointed her to lead the CFPB. He didn’t, so he doesn’t. Therefore, neither Jarrett nor anyone else will go gunning for whomever is out to get Warren. Nobody up there has Elizabeth Warren’s back. (except that guy with a knife, sneakin’ around the corner.)
If the pro forma sessions prevent Obama from making a recess appointment,
what does that do to his ‘pocket veto’ of HR 3808? And what dimension are we playing in?
Ms Elizabeth Warren you’re a trooper! “ONE SHALL CHASE A THOUSAND . . .” You’ve been trumpeting Consumer Protection Rights for many years. I have not only shared information about you and consumer rights, I’m very thankful that you stuck your neck out –particularly on behalf of working class people.
Those of us who have been following your efforts not only support and applaud you, we are DOING our part to keep the issues front and center so that citizens can be as informed as possible to become better consumers –and watchdogs. Further, we realize that financial reforms are essential to averting ourselves –and adversaries– from drowning in an economic Titanic.
It’s ironic that the Geithner / Treasury allies oppose you, but neither the Treasury, nor President Obama can override God. Also, don’t be deterred by a ‘voiceless’ device (unfortunately often effective) called: “Slut and Nut” / “Shame and Blame.” (It’s popular where I’m from; and it’s alternately used for effectiveness.) But, even those plots of evil ‘work together for good. . .’
Be encouraged Ms.Warren! I offer you this notwithstanding I am also aggrieved by financial Titans. Further, I pray for your safety, your success, and for healing of our nation.
Lastly, because whitewashed corruption has ruined America, I pray that corruption becomes overthrown when this election season produces lawmakers who replace corrupt people ‘in high places’. –Barbara Ann Jackson http://new-sblaze.com-/writer/la-wg.html