Now that the Consumer Financial Protection Bureau has been created, everyone is waiting for Obama to nominate someone to head it. On the surface, this would appear to be a no-brainer: Elizabeth Warren, the person who came up with the idea and the current head of the Congressional Oversight Panel that oversees TARP. But it’s been a month since Obama signed the legislation to create the CFPB, and there’s been no nomination.
If Obama really wanted Warren, he would have tapped her as soon as the ink was dry on the bill. So what’s behind the hesitancy? Tim Geithner has been one big obstacle to Warren’s nomination. As Shahien Nasiripour put it,
It’s no secret the watchdog and the Treasury Secretary have had a tenuous relationship. Geithner’s critics have enjoyed watching Warren question him during his four appearances before her panel. Her tough, probing questions on the Wall Street bailout and his role in it — often delivered with a smile — are featured on YouTube. One video is headlined “Elizabeth Warren Makes Timmy Geithner Squirm.”
And if Geithner is squirming, you can be sure that the Banksters are squirming, too. They have no doubt been making their uncomfortableness known to the folks at Treasury and the Fed, and to the White House as well. Their favorite outlet, the Wall Street Journal, pushed Michael Barr as an alternative, just to help the WH look past Warren.
But the longer this soap opera drags on, the more of a box the WH finds itself in. Brady Dennis laid out part of the dilemma in yesterday’s Washington Post:
If Obama doesn’t choose her, he risks infuriating his already-agitated liberal supporters who see Warren as the only logical candidate.
If he gives her the nod, Obama risks deepening the financial community’s distrust of his administration and sparking a confirmation fight. He would be elevating a woman who, despite her mild manner, has repeatedly proven herself a thorn in the administration’s side during her tenure as watchdog over the government’s $700 billion bank bailout program.
Call those options A and B.
If they go with A, the howling will be incredible, and not just from the Professional Left. “She’s good enough to come up with the idea for the agency, but not good enough to head it? She’s good enough to head up the Congressional TARP review committee, but not this new agency?” Speculation is already being aired about this prospect, like today’s story at Politico, which probes the potential sexism issue.
If they go with B, the WH gets a consumer advocate who is going to be about as independent as possible, which is *well* outside their comfort zone. As Jane noted the other day, Team Obama does not like the prospect of having someone who was right about the coming financial mess in the midst of a team of folks who were wrong (and who, like Geithner and Bernanke, were at the middle of the house of cards when it was all being constructed).
But choosing Warren is only part of the political game — after all, Obama chose Dawn Johnsen, Goodwin Liu, and Edward Chen, too . . . and look what happened to them. As Marcy noted, let’s not mistake a nomination for an appointment.
Which brings us to Option C. If Obama nominates her and lets her dangle, a la Dawn Johnsen, what is the likelihood that Warren will be a good soldier and say nothing as the clock ticks away? She’s already shown by her TARP oversight work (especially her questioning of Geithner) that she isn’t particularly over-awed by people with big titles and fancy offices, and is more than willing to call people out for being wrong. Alternatively, what is the likelihood that she’ll get rather upset at being dangled out there to appease the Professional Left without having her nomination actively pushed by the WH, and make her displeasure known in a very public way?
If you’re Rahm Emanuel, option C is seductive . . . but if you guess wrong on how she’d react to being nominated and left to dangle, you’re going to pay a very, very steep price.
The longer this drags on, the harder it will be for the White House to say “we’re trying to look at all the best candidates.” It’s not like this is a Supreme Court nomination, that came up unexpectedly when someone died to creat a vacancy. Ever since the battle to create the CFPB was begun, the WH has been thinking about who to put at the head of it. Meanwhile, as Obama dithers, congressional support for Warren is growing by the day (see Teddy’s great diary about Jeff Merkley, or David Dayen’s coverage here and here). More and more this is becoming a less a question of “who?” and more a question of “Why not Warren?”
And that’s a question that the Obama White House does NOT want to answer.





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Of course, Rahm Emanuel is arrogant enough to think he can bull shit and bluster his way through most anything so he will choose Door Number 3
tiny dancer indeed
That’s great.
(I’m a huge fan of both Jimmy and the late Steve Goodman who co-wrote this with him.)
It’s about time for this whole Administration to squirm. No more talk, no more pretty speeches. The only thing that matters is action.
The reason her nomination is stalled is because they haven’t figured out a way to appoint her and neuter her at the same time. But trust me, some of the best minds in Obama’s inner circle are hard at work on this problem.
Yeah, I first saw Jimmy play at I believe a freebie concert (show student ID) at Van Meter Auditorium on the campus of Western Kentucky University in spring ’73.
I’ve seen him at least a half dozen times and places since.
Is O so pigeon-livered and lacking in plain nerve to truthfully oppose the opportunistic moneyed elites in favor of the millions of middle class and working poor Americans- as FDR did so brilliantly? What is this guy afraid of?? I voted for this guy ONCE. Why is he so smarmy! I’ll be very happy if I am wrong about this, but he really looks like he’s Out to trash Social Security for sure! It’s quite despicable, plain and simple. It’s a mean shell game. And, does anyone really think he is so simply bold enough to appoint Elizabeth Warren – while at the very same time he is so utterly in thrall of Larry, Timmy, & Rahm? People will all become progressive patriots once they FULLY realize they are being scammed – AGAIN! But, they better hurry – and elect the right candidates…. or, it will be gone for good. Now, watch him go play another round of golf to relax ….
Wouldn’t the head of this bureau be implementing policy and rules that are already written, or will there be a lot of interpretation involved? It appears to me that Geithner and Wall Street are simply hoping for someone who won’t do the job. Are Obama and Rahm thinking they can please both sides by creating the bureau, but keep it useless?
And option C is the winner! The only part you left out is when Ron Ziegler redux (aka Robert Gibbs) bitches because we amateur leftists aren’t giving his boss credit for “advancing the Warren nomination.” Kiss my ass, Bob.
I’m going with Zero on that one – which is yet another reason why she’s the right person for the job. I wonder if the Warren-BO meeting the other day amounted to nothing so much as a tire-kicker on the part of the WH to see what the potential was/is for her to be a “good soldier?” I’m sure Rahm, etal would want her to just shut up and fall in line after she is rejected for the position.
Geithner, Wall Street and others want someone they can push around, and they know that isn’t possible with Warren. Yet another reason…
Option D: Geithner sets up the Bureau to be ineffective, fettered by regulations he has drafted , understaffed (or staffed by his/Obama hacks). Then it who leads it is pretty immaterial.
This is another way of saying she is not going to be part of the Obama version of the Unitary Executive practices of Bush the Last.
Banksters and Geithner want Obama, like Bush, to appoint people who will do what the White House wants, rather than to implement good policies. I certainly expect Warren would be a good regulator, willing to protect the class of people the office is designed to protect. If she doesn’t get it, chalk one more Bush policy into Obama’s record.
Whether it really would be or not, a Warren nomination would look like a win for the professional left. Therefore it will never happen.
Firstly, The position/agency has rule making and enforcement powers.
Secondly, I think there is a Plan D. When Warren came to the WH this week, TWICE, she DID NOT meet with POTUS. I really don’t think she has the job. The WH broadside at the Professional Left is their ‘sister soldja’ gambit. I think they are so obsessed with the fact they have been pinned as socialists by the wing nuts they have to stick it to the liberals, who they have been sticking it to since they took office.
Forget about blaming rahm, gibbs, jarrett or axelrod, they may be odious but the President happens to be the blue dog who’s butt they sniff.
He isn’t bush and people can’t call him stupid. He is, though, someone with whom I increasingly disagree with.
does this remind anybody of Brooksley Borne?
sadly yes
We need to assure Ms. Warren that she would not be alone – there are tens of millions of us being left to dangle in the wind.
This is good anaylysis, Peterr. Thank you.
I do think the sexism schtick is a distraction, they don’t like her because she’s not a flunky like the rest of them. This about one thing, will the banks be able to continue to rip the rest of us off? Obama wants that to be the case, Dodd, Frank, Summers, Rubin, Bernanke and all the reps too. The rest of the dems are punks.
The question is, will Obama be able to keep everyone looking at their navels while the recess appointment clock runs out. Warren’s appointment will help dems up for election, and they know it.
Warren at the WH the other day, likely got a little ‘everything’s going to be alright, just keep your mouth shut’ talk.
Need to demand a recess appointment, and keep the issue hot.
BINGO -
The law says the interim head is appointed by the Treas Sec with no input from Congress – and that person staffs and sets up the initial direction and regulations
Even if Warren is nominated, she WILL NOT be appointed interim head
Tim Geithner with appoint a bank friendly person to give direction and do initial staffing (ever try to get rid of a government staffer – not easy).
Then Warren will get through the hearings but for some reason just can’t get the votes for the appointment despite Obama’s total non-effort in her behalf.
Then the interim person is nominated and gets the Senate vote.
It is a dance we have seen too often – right down to the final Dem email asking for donations because we now have a head of the agency.
If this President wants to stop or slow the bleeding support of professional liberals, professional Democrats, Independents he will without much more delay nominate Warren. However if he really does want to further erode the mid terms for the Democrats and his own re-election he will let Wall Street and his Sec Treasury and a washed up corrupt (like his father) Senator Dodd from Connecticut lead him further into the doomed and very high weeds.
Pigeon livered maybe but what is really showing is just how politically weak he is. He has no power because he is bought paid for, he is a corporate whore and he is doing the bidding of his owners.
No amount of “pressure” from us professional
leftists,liberals,progressives,racists,socialists,lesser peopleis going to make a whit of difference. The only thing that will make his masters change their minds about anything is to give them money and more money. The rest of us can go piss up a rope for all they care.Sad – Obama went through the motions at least with federal appeals court judge Wood
Here he is just going to throw Warren under the bus – every time Fox calls him a socialist, he moves father to the right of Reagan/Cheney.
To say he is a coward, not a leader, has no backbone, has no core beliefs beyond pleasing the rich and corporate, understates the problem.
The term ‘punk’ suits Obama the best, imo. Or Manchurian Candidate.
Both are true.
Timmy and his myrmidons are busily writing the regulations that will govern the agency’s operation so that IF Warren gets the nod, she’ll be hamstrung by policy and personnel….
The bankers want a bank-friendly consumer regulator.
Name one instance when the bankers haven’t got what they want from the United States government. Name just one.
I predict Option C.
They seem to have no strategy for November except running down the clock.
If they try to pull an option C, I’m hoping she will go all Shirley Sherrod on them.
Clearly, the ladies have to stand up for themselves and not do every little thing Rahmbo tells them to.
I agree too … the head pr man for the establishment is all about maintaining the current corrupt power structure while deceiving the populace by feeding them a mirage of change. He’s a terrible person in addition to being a terrible president.
Z
Absolutely! Brooksley Born redux. Too tough on the bankster cronies of Tim, Larry, et al.
From everything that we have ever seen from Barack Obama, he ain’t going to pick Elizabeth Warren — not now, not 6 months from now, and not 12 months from now.
They’ll find some other political hack (Wall Street crook) Timothy Geithner approved shyster, and then Chris Dodd will hail the pick as someone who is the “best qualified“, and that will be it.
You see, it is already clear that Obama, and his All-Neocon…All-WallStreet-BankOligarchy administration, do not give a rat’s arse whether or not they infuriate their liberal supporters or not. They have visibily demonstrated that their liberal base plays zero factor whatsoever in any of their decision making, and they have no interest in either liberal policy, or any real government accountability, sunlight, competence, and transparency. They don’t even respect, like, or even want their base.
I think we’ve seen and heard enough of Robert Gibbs FOXNEWS-esque villification of “The Left” to know that this administration is just not on our side folks, anymore than Joe Lieberman is.
It is time to recognize some hard truths:
1. Obama’s Foreign Occupation of Iraq has no Exit Strategy of any credibility.
Obama’s so-called draw down of troops is a pure semantic game gimmick, where he is committed to maintaining 50,000 (or more) “non-combat” counter-insurgency armed forces. This is simply a rebranding of an illegal, imposed military occupation (which our government would regard as tyrannical if any other Nation was doing it). Obama has, in fact, even INCREASED the presence of Military Contractors in Iraq, including Blackwater. We still will have 18 permanent manned Military Bases in Iraq forever, and a new U.S. Embassy larger than the size of the Vatican – all under Military command support. The U.S. Foreign Occupation of Iraq is therefore permanant policy as long as Obama remains the U.S. President — no matter what claims come out of his mouth. And it just so happens that John McCain was only being more honest when he stated that we would remain there for 100 years.
2. There is no Exit Strategy in Afghanistan, only senseless, Deeper expansion, Corruption, Death, anti-American hatred, Drug Trafficking, War-Profiteering, and utter waste of Taxpayer money ….. that could be better spent on ______ (fill in the blank) with this President.
3. There is no Exit Strategy in Pakistan, and the madness of Robo-Drone civilian Bombings with this President.
4. There is no Exit Strategy from the Unconstitutional U.S. Patriot Act with this President, and don’t even get me started on the ongoing, endless criminal Human Rights abuses, and loss of our Liberties (and why isn’t Bradley Manning a Hero?).
5. There is no Exit Strategy to Obama’s Neocon Military encircling of Iran and Venezuela (Countries that never harmed any other Nation themselves, but simply possess Oil Reserves).
6. And there is no Exit Strategy from The War on “The Left” as long as this President, and his foul-mouthed, elitist, pro-Oligarchy staff sits in the Oval office (and continues to disgrace it).
We Need A New President Folks, and the time is not 2016 — but 2012.
Geithner is already structuring the CFPB in the interim until an appointment is made, and he will put in staff and others beholden to Wall Street. If she gets in she will face a daunting task of undoing the damage and landmines Tim will have created.
This is the rich versus everyone else, not some diversion issue. All the big guns are out and ready to fight for that top 100th of 1 percent that really runs America.
Just do the right frickin’ thing. That would be a switch.
Well said. I agree 100%
Somebody told me a rumor in Washington that Obama will pick Hillary as VP to try to save his ass. IMO, Brad Sherman should Primary the both of them.
http://www.youtube.com/watch?v=nBD7DtIFCHo
That was part 1, Part 2 is the better part.
http://www.youtube.com/watch?v=FqcsUCWaxis&NR=1
We have the MMA giving carte-blanche to BP, and the Coast Guard actually applying corexit to the Gulf, and the EPA saying “it’s safe”, and NOAA playing “aw shucks, I knew there was some oil here, somewhere”, and the MSA rolling over and over for “kleen Koal”. What can be expected from the new CFPB? The government EXISTS to ease the way for big business, just like it did for il Duce,
Part 3.
http://www.youtube.com/watch?v=r-mhUJwH1rk
I think Howard Dean, Dennis Kucinich, Alan Grayson should all make a run in the 2011-2012 Primaries.
We should all let them all know right now that we’ve got their backs!
It is time to finally give voice to progressive policies in this Country.