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The New York Times published an editorial criticizing President Barack Obama for passing over Elizabeth Warren as director of the newly created Consumer Financial Protection Bureau. “Consumers vs. Banks,” The New York Times, Sunday, July 24, 2011.
Elizabeth Warren is a Harvard law professor and the main person behind the creation of the new Consumer Financial Protection Bureau (C.F.P.B.). Congress created this bureau when it approved the Dodd-Frank law to overhaul financial regulations after the credit crisis. However, Ms. Warren was not nominated because she is seen very unfavorably by Republicans in Congress for being very outspoken against the financial industry. President Obama nominated instead Richard Cordray, a former Attorney General of Ohio
who has worked closely with Ms. Warren to build up the agency.
The editorial criticizes this decision, noting that nominating Ms. Warren was a fight worth fighting for: “In deciding not to fight for Ms. Warren, the president has forfeited the opportunity to stand up to the banks and to highlight their relentless efforts to undermine reform.”
The newspaper even discusses the possibility that President Obama does not want to risk campaign contributions from banks: “It is hard not to think that Mr. Obama was worried that choosing Mr. Warren would have cost him and Democratic senators campaign contributions from the banks.”
The editorial finds Mr. Cordray qualified to become director, but expresses concerns about his nomination. Republicans want the agency to be run by a board of directors instead of one person. And the newspaper notes that it is uncertain how strongly the President will defend this nomination given what happened to Ms. Warren.
We at the law offices of Jayson Lutzky, P.C. are following closely recent events related to the protection of consumers. If you are struggling with debt, and you are in need of legal advice, please feel free to call us at 1-800-660-5299 or visit us at www.bankruptcynyc.com for a free initial consultation.