Please support Elizabeth Warren to head the new Consumer Financial Protection Bureau

John R. Talbott writes that the banking industry and its Obama Administration lackeys (esp. Timothy Geithner) are fighting fiercely to block President Obama from selecting Harvard Law professor Elizabeth Warren to head the new Consumer Financial Protection Bureau.

Professor Warren is the blindingly obvious choice because the bureau was her idea and wouldn’t exist had she not pushed for it and because no one has greater capacity or credibility to run that bureau than Professor Warren. She knows the banking industry’s devious tricks and possesses the legal knowledge to defeat them.

Of course, anyone who knows anything about Washington, DC knows that the best person to run an agency is often not selected because those who oppose the agency’s mission — banks, in this case — fight for less effective agency heads who lack the motivation and/or competence to achieve the agency’s mission. The most obvious recent example is MMS, which was supposed to regulate the oil and gas industry but instead slept with its lobbyists, snorted its cocaine, and then took “jobs” in the industry in exchange for letting oil and gas companies (oxymoron alert) “regulate themselves.” MMS’s refusal to do its job aided and abetted BP’s destruction of the Gulf of Mexico.

Talbott notes the banking industry has a further reason to oppose Warren. After America’s megabanks became, in effect, insolvent, the Obama Administration and the Federal Reserve refused to shut them down, kick out executives, and reorganize the banks, as they should have. Instead, Obama and the Fed simply ignored the fact those banks were less-than-worthless and contrived schemes to shovel money at them. One way they’re doing that is by letting banks gouge customers (i.e., us) with high fees and penalties on accounts and credit cards and virtually zero interest rates on deposits. Elizabeth Warren would crack down on bank price gouging, making it harder for banks to “earn” profit and dig themselves out of their financial holes.

I just petitioned the President to nominate Professor Warren, and I encourage you to do the same.

Posted by James on Monday, July 19, 2010