Posts Tagged ‘Elizabeth Warren’

The Elizabeth Warren Quote That Has Everyone Talking

Monday, October 17th, 2011

Elizabeth Warren, who is running for the Senate in Massachusetts as a progressive Democrat, has caused controversy between the right and left with the following statement: “There is nobody in this country who got rich on his own. Nobody. You built a factory out there — good for you. “But I want to be clear. You moved your goods to market on the roads the rest of us paid for. You hired workers that the rest of us paid to educate. Part of the underlying social contract is you take a hunk of that and pay forward for the next kid who comes along.”

Speaking at a small gathering at a supporter’s house, Warren also said “My favorite part of looking at this hole, we got in this hole, one billion dollars, uh, one trillion dollars, on tax cuts for the rich under George Bush. We got into this hole two trillion dollars on two wars that were put on a credit card for our children and grandchildren to pay off. And we got into this hole one trillion on a Medicare drug program that was not paid for and was 40 percent more expensive than its needs to be because it was a giveaway to the drug companies. That’s just four trillion right there. So part of the way you fix this problem is don’t do those things! I hear all this, oh this is class warfare, no! You were safe in your factory because of police forces and fire forces that the rest of us paid for. You didn’t have to worry that marauding bands would come and seize everything at your factory. Now look.”

Warren, a Harvard law professor, is leading in polls in Massachusetts. Brown showed no interest in discussing politics on the day when the Democratic-leaning Public Policy Polling survey showed him behind Warren for the first time in a general election match-up. “There’s going to be plenty of polls. I don’t think about polls. Never been a big poll guy,” Brown said.

The website Behind Blue Lines takes an opposite approach. It notes that “Ah, Professor, have you ever heard of property taxes, excise taxes, income taxes, fuel taxes – and on and on? The entrepreneur pays them too, I can assure you. They pay for the roads, schools, firemen and police – often several times over. And who’s this ‘we’, anyway? Would that be ‘we’ as in know-betters like you? Or would it be ‘we’ in the sense of all the people who pay taxes, including the miscreant who ‘builds a factory’ (and creates valuable products and services benefiting all) and ‘hired workers’ (and paid them taxable wages and benefits). The ‘work the rest of us did’, indeed. What stinks the most about her tirade, however, is the arrogant assumption that we are all state property. That everything we are, including our very selves, belongs to government. I feel obliged to point out that her campaign was forced to admit that she was paid $192,722 for her ‘services’ on the TARP panel.

Elizabeth Warren Tapped to Create Consumer Financial Protection Bureau

Monday, September 27th, 2010

President Obama slips Elizabeth Warren in without Senate confirmation process.President Barack Obama’s decision to name Wall Street’s archenemy Elizabeth Warren as his special advisor to direct the creation of the Consumer Financial Protection Bureau bypasses the often confrontational Senate confirmation process.  The Harvard law professor is now tasked with building a new government agency that will crack down on abusive financial practices such as mortgages and credit cards from the ground up.  President Obama – who has known Warren since his law school days – has named her “assistant to the president” — a desirable title in inner White House circles.  Warren will report directly to both the president and to Treasury Secretary Timothy Geithner.  Importantly, Warren will have direct access to the president, making her, in effect, the Secretary of the Treasury overseeing all consumer lending.

By naming Warren an adviser rather than as the agency head, President Obama avoided the congressional confirmation process, which Republicans likely would have used to derail the nomination.  http://news.yahoo.com/s/nm/us_financial_regulation_warren “Clearly putting her in this role cements her imprint on the agency, whether she ultimately leads it or not.  It also implies there’s going to be a transfer of power from the other regulators sooner rather than later.  I think it would be better, though, for the agency to have a Senate-confirmed agency head, if that’s even possible,” said Ed Mills, an analyst with FBR Capital Markets.

Wall Street’s reaction was predictable, given Warren’s unpopularity there.  “It’s a thumb in the eye to people trying to address real issues,” said Matt McCormick, a portfolio manager and banking analyst with Bahl & Gaynor.  “It is obviously more political than focused on correcting ills of what happened in the financial industry.  I really doubt she will have the ability to bring people together considering the political nature of her appointment. It is troubling.”

“The Consumer Financial Protection Bureau will empower all Americans with the clear and concise information they all need,” President Obama said at the Rose Garden announcement.  “Never again will folks be confused or misled by the pages of barely understandable fine print that you find in agreements for credit cards or mortgages or student loans.”

Elizabeth Warren Ideal Head for the Bureau of Consumer Financial Protection

Thursday, August 19th, 2010

Elizabeth Warren to be our new consumer protection czar.  A leading candidate to head the new Bureau of Consumer Financial Protection is Elizabeth Warren, although her potential nomination is not without controversy.  Writing on CNN Money.com, Katie Benner says “Detractors say that Warren lacks experience, that she’s not impartial, and that she could make it so expensive to extend credit that only the richest Americans and biggest businesses could get a mortgage, a credit card or a loan.  But these knocks against Warren obscure the likely impact that she would have on the bureau.  And mostly, they are straw men.”

Warren is a Beltway outsider and a Harvard law professor.  She did take leave in 2008 to head the Congressional Oversight Panel (COP), which evaluates TARP and oversees the Treasury Department.  Since its inception, the COP has published 22 detailed reports with little dissent, despite multiple differences of opinion regarding economics and politics among the staff members.  Ken Trotske, an economist who serves on the panel, describes Warren as a consensus builder.  “I’m in awe of the work they turn in to meet that schedule, because it’s a demanding schedule.”

In its two years of existence, COP has become an intellectual hub in Washington, D.C.’s efforts to understand the relationship between the federal government and Wall Street.  According to Benner, “The outcry over Warren’s impartiality is a through-the-looking-glass twist on the current state of our regulatory affairs.  It bears repeating that it’s a good thing for the head of an agency designed to protect consumers to actually put the interests of consumers first.  For the last few years, as was made imminently clear by the implosion of 2008, Wall Street regulators were doing anything but regulating.”

In Benner’s words, “Someone like Warren is a shock to that system.  She unabashedly sides with consumers.  She hates fine print and contracts with ‘gotcha’ clauses.  She wants to eliminate predatory loans.  And she thinks that it’s okay for bank profits to be crimped in service of a level playing field between borrowers and their lenders.

Trouble Ahead for Community Banks

Monday, May 10th, 2010

Banks with less than $10 billions in assets are facing commercial real estate losses.The nation’s small and medium-sized banks – those with under $10 billion in assets – could see a spate of commercial loan failures in coming years, according to a report issued by the Congressional Oversight Panel as part of its supervision of the Troubled Asset Relief Program (TARP).  The panel’s chair, Harvard law professor Elizabeth Warren, is “deeply concerned” that commercial loan losses could destabilize many smaller banks – which account for nearly 50 percent of all small business loans.

Dennis Lockhart, president of the Federal Reserve Bank of Atlanta, is especially troubled about the interaction among bank lending, small business employment and commercial real estate values.  According to Lockhart, a significant amount of CRE exposure is concentrated at smaller institutions, which carry almost half of total CRE loans.  Small firms’ reliance on banks with heavy commercial real estate exposure is considerable.

The Wall Street Journal counters the pessimism by pointing out that a decrease in unemployment and easier credit for developers could mitigate the losses, thus easing the pressure on real estate developers and other businesses trying to make their payments.  On the other hand, Dr. Gary Shilling, president of A. Gary Shilling & Company, an investment advisory services company, is urging his clients to avoid regional and community banks.  He expects that many more banks will fail, but notes that the Obama administration “is extending the Troubled Asset Relief Program to them and is using other techniques to keep them, as a group, intact.”