The White House wants financial reform, but can’t seem to hit the mark when it comes to finding leaders for such organizations as the Consumer Financial Protection Bureau and Office of Financial Research, writes CNBC. CFPB prospect Warren is too extreme in the minds of GOP U.S. Senate critics, while Office of Financial Research candidates are begging out of that six-year political mosh pit. Without clear leaders at the helm, both groups will fail to fulfill their promise. Source for this article – CFPB directorship post in doubt for Elizabeth Warren by MoneyBlogNewz.
Fighting for political turf turns off Office of Financial Research, CFPB candidates
The Office of Financial Research, which was established by the Dodd-Frank Wall Street Reform and Consumer Protection Act, can be charged with improving the quality of financial data available to policymakers, for instance information concerning charge cards, money advances and the payday cash advance industry.
The White House needs to come up with a chair for it though. The OFR cannot go anywhere without it. Since numerous high profile candidates don't feel like the six-year commitment and troubles in Washington are worth paying attention to, such as Yale economist Robert Shiller who co-founded the Case-Shiller Home Price Index, they have excused themselves from consideration.
A very specific person is needed to fill the Office of Financial Research post, according to an anonymous source talking to CNBC.
The position “needs a tough-guy-like attorney" who isn’t afraid of dogfights, said the source.
Keeping Warren out of the position
When it comes to Consumer Financial Protection Bureau, Republicans are worried about putting Warren in the spot. This is because of a "radical pro-consumer agenda" that would end in her giving fees to businesses without considering what it takes for them to keep their doors open. Even though Prof. Warren is very close to the appointment process – Obama has put her in charge of the search – Republicans and now even some Democrats and Independents are uncertain that Warren’s appointment would be confirmed.
New Hampshire Republican Sen. Judd Gregg said that Elizabeth Warren can't be put in the Consumer Financial Protection Bureau position. It would be "a terrible adulteration of the process," ABC reports. Gregg said it’s inappropriate to let that spending budget power as high as $500 million is given to someone who is outside of Congressional oversight.
"My concern is that she would use the agency for the purposes of promoting social justice versus for the purposes of promoting better credit and having a stronger financial system," said Gregg.
Republicans would like Shelby
Shelby is a U.S. Senate Republican who is also a senior GOP member of the Senate banking committee. Republicans would pick him for the Consumer Financial Protection Bureau position if given the choice. According to ABC News, Shelby vetoed the nomination of Joseph Smith to the Federal Housing Finance Administration and opposed appointing Nobel Prize-winning economist Peter Diamond to the Federal Reserve board. Clearly, Shelby knows how to oppose Democrat-favored appointees.
Articles cited
ABC News
blogs.abcnews.com/thenote/2010/09/sen-gregg-elizabeth-warren-will-pursue-social-justice-agenda-in-new-post.html
CNBC
cnbc.com/id/41899062
Credit.com
credit.com/blog/2010/11/new-watchdog-gives-sneak-peak-at-her-agenda/
‘Consumers need a cop on the beat’
youtube.com/watch?v=2UCWIyOQpes
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