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« WHERE IS THE OUTRAGE: Without Transparency, Who Will Police The SEC? | Main | IT NEVER ENDS: Check Out This Disgusting Piece Of TARP Apologist Journalism »

Elizabeth Warren Introduces COP's August Report, Speaks Out As Acting Director Of The CFPB (VIDEO)

As you know, Dr. Warren has finally been hired.  Her most recent comments have been posted this morning on the White House blog:

Over the past several weeks, the President and I have had extensive conversations about the vital importance of consumer financial protection.

The President asked me, and I enthusiastically agreed, to serve as an Assistant to the President and Special Advisor to the Secretary of the Treasury on the Consumer Financial Protection Bureau.  He has also asked me to take on the job to get the new CFPB started—right now.  The President and I are committed to the same vision on CFPB, and I am confident that I will have the tools I need to get the job done.

President Obama understands the importance of leveling the playing field again for families and creating protections that work not just for the wealthy or connected, but for every American. The new consumer bureau is based on a pretty simple idea:  people ought to be able to read their credit card and mortgage contracts and know the deal.  They shouldn’t learn about an unfair rule or practice only when it bites them—way too late for them to do anything about it.  The new law creates a chance to put a tough cop on the beat and provide real accountability and oversight of the consumer credit market.  The time for hiding tricks and traps in the fine print is over.  This new bureau is based on the simple idea that if the playing field is level and families can see what’s going on, they will have better tools to make better choices.

If the CFPB can succeed at leveling the playing field,  we can go a long way toward repairing a gaping hole in the budgets of millions of families.  But nobody has ever thought or argued that the consumer bureau can fix everything.  Lost jobs, stagnant incomes, rising costs for college, dwindling retirement savings—there’s a lot of work to be done.

When she was 16, my grandmother, Hannie Reed, drove a wagon in the Oklahoma land rush.  Her mother had died, so she was up front with her little brothers and sisters bouncing around in the back.  When I was growing up, she talked about life on the prairie, about marrying my grandfather and making a living building one-room schoolhouses, about getting wiped out in the Great Depression.  She was hit with hard challenges throughout her life, but the moral of her stories was always the same:  she would solve her problems one at a time by pulling up her socks and getting to work.

It’s time for all of us to pull up our socks and get to work.


Video:  Congressional Oversight Panel's August Report

Complete report and shorter Executive Summary are at the following link:


WASHINGTON, D.C. - The Congressional Oversight Panel today released its August oversight report, "The Global Context and International Effects of the TARP." The report recommends that Treasury collect data on cross-border flows of funds, increase the scope and frequency of stress testing on financial institutions, and collaborate with foreign policymakers on a cross-border resolution regime and for regular crisis planning and financial "war games."

The financial crisis that began in 2007 exposed the interconnectedness of the global financial system. Although the crisis began with subprime mortgage defaults in the U.S., its damage spread rapidly overseas. The Panel found that policymakers were ill-prepared for such a worldwide crisis and that "the internationalization of the financial system has outpaced the ability of national regulators to respond."

Despite the limits of international coordination, most countries ultimately intervened in markets using the same basic set of policy tools: capital injections to financial institutions, guarantees of debt or troubled assets, asset purchases, and expanded deposit insurance. The U.S., however, targeted its rescue very differently than other countries. While most nations targeted their funds to save individual institutions, America simply flooded the markets with money to stabilize the system. Since much of this money accrued to U.S. institutions with extensive international operations, it appears that America's rescue had much greater impact internationally than other nations' rescues had on the U.S.

The Panel made several recommendations, including:

Policymakers need strong, clear data to measure the success of their rescue efforts and to respond effectively to future crises. Treasury gathered very little data on how bailout funds flowed overseas, which makes pinpointing the exact amounts and sources of the flow of cross-border rescue funds impossible. In the interests of transparency and to help inform regulators' actions in an increasingly integrated world, the Panel urges Treasury to collect and report more data about the international flow of TARP funds and to document the TARP's impact overseas.

The Panel believes financial "war gaming" and "stress tests" should be used much more widely. One of America's most powerful tools in the financial crisis, and one that was emulated by other countries, was the Supervisory Capital Assessment Program (SCAP), or "stress tests." On the international level, vigorous stress tests could identify the weakest points of the international financial system and allow policymakers to plan an emergency response. U.S. officials should encourage regular international crisis planning and financial "war gaming."

The crisis revealed the need for an international plan to handle the collapse of major, globally significant financial institutions. A cross-border resolution regime could establish rules that would permit the orderly resolution of large international institutions, while also encouraging contingency planning and the development of resolution and recovery plans. Such a regime could help to avoid the chaos that followed the Lehman bankruptcy and the struggles that preceded the AIG rescue.






Kindly, piss off, Wall Street.  There's a new sheriff in town.




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Reader Comments (15)

I'm glad she was "made". Hope it turns out to be more than just theater. When you focus on Wall Street getting into consumer's pockets with fine print not seen by the credit challenged, they just change the rules a little and charge the credit worthy up front.
And that focus takes away from the slight of hand behind your back where the real collection arm of Wall Street, the U.S. government, steals from the other pocket in ways a little harder to point to, like inflation and bubble-popping asset value destruction.
But I still like Elizabeth--can't wait until she bitch slaps the piss out of Geithner in their first real catfight. It's coming ... they are "none too fond" of one another, despite the civilized appearances for now...
Sep 17, 2010 at 11:34 AM | Unregistered CommenterWil Martindale
Geithner hates her for exposing his work via AIG/Goldman/NYFed...but TARP officially ends next month...october 3rd...so that conflict may be quieting down...

It could get very interesting if barofsky charges stephen friedman or god forbid Geithner for the NY FED-AIG cover-up...

AIG Cover-Up: SIGTARP Barofsky Hints At Criminal Charges Against The New York Fed

Sep 17, 2010 at 11:44 AM | Registered CommenterDailyBail
WASHINGTON (MarketWatch) -- The White House on Friday said Elizabeth Warren will set up the Bureau of Consumer Financial Protection, an agency whose establishment she has championed for years.

The Harvard law professor will be appointed as an assistant to Obama, and special advisor to the Treasury Department secretary, according to a White House blog post she authored. The consumer-protection bureau is aimed at cleaning up the marketplace and clarifying disclosures for mortgages and credit cards, among other actions. Supporters also hope that a safer consumer marketplace will translate to a more stable financial system.

Sep 17, 2010 at 11:46 AM | Registered CommenterDailyBail
WASHINGTON (MarketWatch) — The Treasury Department’s “ineffective” handling of the $700 billion Troubled Asset Relief Program makes it more difficult for the government to respond to future financial crises, a key congressional watchdog said Thursday.

“The early change in TARP strategy from asset purchases to capital injections, followed by the rollout of numerous seemingly unconnected programs, combined with largely ineffective communication of the reasoning behind these actions, spread confusion in the public and undermined trust in the TARP,” the Congressional Oversight Panel said in its September report.

“The greatest consequence of the TARP may be that the government has lost some of its ability to respond to financial crises.”

Sep 17, 2010 at 11:47 AM | Registered CommenterDailyBail
Elizabeth Warren Didn't Want Permanent Appointment To CFPB: Frank


Good inside detail...
Sep 17, 2010 at 2:37 PM | Registered CommenterDailyBail
This move will certainly cork EW's popularity. You know how Obama feels about people who talk to the media about his shortcomings.
Sep 17, 2010 at 2:50 PM | Unregistered CommenterZ
WTF...This is what Obama wants...

White House Science Czar Says He Would Use ‘Free Market’ to ‘De-Develop the United States’


“A massive campaign must be launched to restore a high-quality environment in North America and to de-develop the United States,” Holdren wrote along with Paul and Anne H. Ehrlich in the “recommendations” concluding their 1973 book Human Ecology: Problems and Solutions.

“De-development means bringing our economic system (especially patterns of consumption) into line with the realities of ecology and the global resource situation,” Holdren and the Ehrlichs wrote.
Sep 17, 2010 at 2:57 PM | Unregistered CommenterZ
"White House Science Czar Says He Would Use ‘Free Market’ to ‘De-Develop the United States’ "

Welcome to the world of Agenda 21.

Sep 17, 2010 at 4:31 PM | Unregistered CommenterS. Gompers
Watched both vids Gomps. With all due respect: LOONEY TUNES!!!!
♪ ♪ ♪ Ta taratatatatatat Tarartatatata La La La lalalala♪ ♪ ♪ ♪
♪ ♪ ♪

Th-th-th=that's all folks!
Sep 17, 2010 at 8:53 PM | Unregistered CommenterRecoverylessRecovery
Go Liz! I will literally be praying for you to succeed. I just saw your interview with R. Maddow--great outline
of your goals!
Sep 17, 2010 at 9:20 PM | Unregistered CommenterC.J. Brown
"Watched both vids Gomps. With all due respect: LOONEY TUNES!!!!"

Boy I am glad you cleared that up RLR, that means Rio de Janeiro in 1992 was just a bad dream I have been living with all these years. The funny part is that no matter where you are planning on running to, doesn't matter, because they are signed on as well. But you can continue dreaming I suppose.







Even Gobie is sensing it above, he just may not realize how deep it goes, because he still thinks one candidate is better than the other in two captured parties.

Sep 18, 2010 at 5:43 AM | Unregistered CommenterS. Gompers
The WatchdogElizabeth Warren may be the only person in Washington who stands between us and Wall Street's next meltdown...http://www.rollingstone.com/politics/news/12697/64929

TROUBLING...But Warren hasn't given up. In recent weeks, she says, the prospects for meaningful reform have gotten considerably brighter, thanks to the president's victory on health care.

TROUBLING...If Warren has all the right enemies, she has also cultivated powerful friends. At the White House, she speaks directly to presidential wingman David Axelrod, and Obama himself has made the case for her agency on The Tonight Show. Warren strategized with Rep. Barney Frank, chairman of the House Financial Services Committee, to steer the CFPA to passage in the House. "She has a great sense of how to operate politically," Frank says. And in the Senate, where debate on reform is just heating up, Majority Whip Dick Durbin calls Warren his "go-to person."

SOUNDS GOOD...As Warren sees it, there are three basic strategies available for ending the era of Too Big to Fail. Break up the banks. Prohibit them from engaging in too-risky behaviors, such as running their own hedge funds with federally insured deposits. Or create a credible form of bankruptcy that enables regulators to pull the plug on failing banks before they take down the entire economy. Although she believes all three will probably need to be used in concert, Warren views the third element as the linchpin. "I hope it is never necessary to kill off one of these companies, because that's a scary moment," she says. "But that's the point of law. Bankruptcy is there to have a set of rules in place for the potentially catastrophic moment."

BINGO...If anything, funny-money accounting has received a federal seal of approval. Remember all those "toxic assets" that TARP funds were supposed to buy up and dispose of? They're still on the books of big banks. The only thing that's changed are the accounting rules. With a wink from federal regulators, banks can now pretend that such assets are worth more than any buyer would pay for them.
Sep 18, 2010 at 11:47 AM | Unregistered CommenterZ
Remember all those "toxic assets" that TARP funds were supposed to buy up and dispose of? They're still on the books of big banks.


Many are still there yes...but the Fed and fannie & freddie especially have been buying these assets...it's their way of ridding the banking system of toxicity...but the eventual bill goes to taxpayers for fannie & freddie...
Sep 19, 2010 at 2:22 PM | Registered CommenterDailyBail
"but the eventual bill goes to taxpayers for fannie & freddie... "

Gee, I always wanted toxic assets, how did they know? Thanks Uncle Sam, you are far to good to me...
Sep 19, 2010 at 2:44 PM | Unregistered CommenterS. Gompers

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