I mentioned this in yesterday’s roundup, but it’s worth repeating. Richard Shelby, the ranking member of the Senate Banking Committee, wrote a letter signed by 44 of his colleagues, saying that they would filibuster any nominee to the Consumer Financial Protection Bureau unless they are allowed to significantly weaken it. Their list of demands:
Replace the single Director with a board to oversee the Bureau. This would prevent a single person from dominating the Bureau and provide a critical check on the Bureau’s authority.
Subject the Bureau to the Congressional appropriations process. This would provide oversight and accountability to the American people on how public money is spent.
Establish a safety-and-soundness check for the prudential financial regulators, who oversee the safety and soundness of financial institutions. This would help ensure that excessive regulations do not needlessly cause bank failures.
So, no director, a budget Congress can squeeze and the ability to pre-empt anything CFPB does. Just three simple reforms.
This makes the recess appointment of Elizabeth Warren that much more likely. These are the demands for the confirmation of any director; indeed, the demand for confirmation is to eliminate the directorship and create a multi-member board. Since these are all elements that would significantly weaken CFPB’s structure, it’s likely that they will not be agreed to. Indeed, they couldn’t pass the Democratic-held Senate. Which means that the only way to get a director is through a recess appointment. And to the extent there was any strike against Warren, it was confirmability. Now Shelby tells the White House that NOBODY is confirmable. All things being equal, then, the Warren nomination becomes incredibly attractive. Not to mention the fact that there’s a built-in deadline to get a director up and running by July 21 or else CFPB loses the ability to regulate non-bank financial institutions.
I don’t think this was Shelby’s intention, but after the nomination and recess appointment, maybe Warren can send him a box of chocolates or something.
UPDATE: More on Warren winning over bankers from Mother Jones’ Andy Kroll.
UPDATE II: David Arkush of Public Citizen sees this the same way, that Shelby and the Republicans are basically giving up on stopping a Warren nomination and trying to redirect the conversation.




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Read the Mother Jones article: I love this woman!
Thanks, David.
Kroll writes about Warren’s charm offensive winning over bankers. I have another take on this. I think her virtual silence during a period in which consumers have been raped by FIRE may also have something to do with the “winning over” — if it’s happening at all.
I know Warren is adored by many on FDL — and her work before joining Barry’s team does deserve much praise. But she has been largely silenced by the administration. She would be a much stronger voice for consumers outside an administration that has shown it doesn’t give a big rat’s ass about the consumer.
YMMV
FSM bless the Republican Party; standing up for the little guy…so long as he owns a huge corporation and makes lots of donations. When, when, WHEN will the American public realize that they are being played? I used to think that Orrin Hatch was the worst person in the Senate; Mr. Shelby is running hard for the goal line. I do hope the President goes ahead and makes a recess appointment; screw them where they breathe!
.
Or maybe she could just give him the finger.
Thanks for the post, David.
I hope there is a recess appointment of Warren and Obama doesn’t let these people rewrite legislation that has already been passed but that would require spinal implantation surgery for Obama I would think.
I think one must be skeptical of anyone who is supposed to be a regulator in the O admin on first principles. I’ll give Warren a chance to prove the exception to the rule, but I have my doubts.
Just out of curiosity, are there any other bureaus that are run by a board instead of a single director, or is it just consumer financial protection that R’s are concerned about requiring special oversight?
FEC and FCC just off the top of my head, although they’re commissions, not boards. Pretty much the same thing.
Oh, and Shellface is a fuckin’ asshole.
Not sure. But it’s obvious that the Rs would like Barry’s entire cabinet run by a bipartisan board. (We may get that in the second term — if there is one.)
I agree. I think they’re reserving the (recess) appointment to cover over another uptick in the unemployment rate.
Are they that cynical? Does the Pope shit in the woods? Oh, wait …
Margaret, you said it best.
I too want that recess appointment and tell the Repubs to go pack sand with their ideas of rewriting the legislation.
If Truman or FDR were President they would be loudly and continuosly calling out Shelby (and others) as being a lackey for the rich and elite. We need more testosterone in the leadership, and oddly one of the few exhibiting that is Elizabeth Warren, and not the androgen-depleted gang that can’t talk straight in the WH.
Assuming president BB balls will recess appoint.
Spot on. Though the testosterone remark was unjustified. One doesn’t need testosterone to stand up for principles and against such demands. That’s a stereotype.
YES, YES!! Warren needs to be put in by recess appointment. The louder the repubs scream on this, and the more the “elite” financial corps try and lobby against, the more it becomes clear that while Dodd-Frank is not perfect, it is a hell of a good start.
There are plenty of strong voices on the outside, but with no power. We need someone, with power, on the inside.
Saying Dodd-Frank is not perfect is like saying the BP clean up was not perfect. The toxic still rolls.
Dodd-Frank had two serious weaknesses that doomed it from the beginning: Chris Dodd and Barney Frank.
Ah, you’re correct. A pair of boards that seem to continuously be mired in so much partisan bickering that they reliably fail to do anything. Pretty much clear that this is what Shelby & the R’s seek for the CFPB as well, since they haven’t ever been in favor of anything that limits the ability of business (especially FIRE) to screw over the rest of us.
I can’t understand why they’d be worried about that. I have difficulty understanding how making the cabinet into a bunch of bipartisan boards of ineffectiveness would make for a more business-friendly atmosphere than what is presently in place.
Well, you do have a point. It’s about as business-friendly as it can get. But the Rs always want more. They might even prefer that Barry sleep with Laura Ingraham and Michelle.
It seems to me, and I admit my perception might be wrong (but I have read it elsewhere as well, so I know I’m not alone in thinking this), is that Warren has been effectively muzzled by bringing her into the executive branch, and I’d actually be (pleasantly) surprised is she awakes from her somnambulance/don’t-rock-the boat mode by this appointment.
I think she’d be much more effective as a consumer advocate if she was outside the tent pissing in.
What econobuzz said.
At this point Warren is nothing but a dog yummy that Obama has been wagging in front of progressives for lo, these many months. That so many of us are willing to do tricks, every time he drags her out, is embarrassing.
In fact, since Warren, herself, is obviously willing to be used this way, instead of holding a presser and removing herself from the status of a piece of kibble, I’ve lost all respect for her.
“…they might even prefer that Barry sleep with Laura Ingraham AND Michelle…”
Bachman or Malkin?
Either way, he’d probably do it.
Just to be bi-partisan, you understand.
I guess I should have read the comments before posting my own, I could have just saved time and typed “ditto”
I thought she was probably being co-opted too ~ it’s entirely possible ~ until I saw her recently on The Daily Show (link).
I think there is reason to believe she could be the exception to the rule. I certainly see that she has skillz and she is definitely giving it her all.
Don’t worry–Obama will cave; he always does.
Shelby’s description of “reforms” is a bankster’s wet dream for how to strangle reform with its own bureaucrats – a meme that would make David Brooks’ constant moralizing about the hubris of [only Democratic] technocrats a self-fulfilling prophecy.
His focus does seem to assume that the CFPB will be staffed and regulated by those opposing the banksters freewheeling down an icy hill with all the school kids and their parents on board their bus. He is focused on changing the game his sponsors will have to face, not on pre-empting it. But why would his opponents not make bloody hay by pointing out the corruption his goals would aid and excuse so as to make his job harder, while better explaining and driving home the need for the CFPB in the first place?
Totally with you on this point, EOH.
Yves Smith at NC had this item up today, also.
My interpretation is that banksters are looking mighty damn weak if the Sleazoid Shelby is their best pony. Made me downright cheerful over my morning cuppa ;-)
I went over to Open Secrets to look up Shelby’s 2010 race funding, but spotting this thread, I’ve gone over to look up Shelby’s campaign finance career profile.
I think since Open Secrets is…. open source, it’s okay to copy this snippet here:
1989 – 2010 Total Receipts: $26,441,446
1989 – 2010 Total Spent: $10,086,941
Debts: $0
Last Report: Thursday, March 31, 2011
Top 5 Contributors, 1989 – 2010
Contributor Total
Southern Co $148,491
JPMorgan Chase & Co $140,771
Drummond Co $125,800
MBNA Corp $111,550
Collazo Enterprises $110,100
Top 5 Industries, 1989 – 2010
Industry Totals
Lawyers/Law Firms $2,400,201
Securities & Investment $1,529,182
Real Estate $1,168,503
Commercial Banks $1,068,683
Insurance $894,348
Ah, Shelby, the Senator brought to you by real estate, banks, securities traders, and insurance (i.e., CDS swaps). Booyah!
More detailed info at the Open Secrets link.
Please stay on this one, DDay!
IMVHO, this is definitely a sign the banks are on defense, and if Shelby is their quarterback, I’m buying extra hot dogs with lotsa relish ;-)
Too funny.