This Democrat is watching

Ms. Warren’s adversaries are said to be trying to keep her off the banking committee, where she could push for more regulation, while her admirers want her to be on it. “Her strategy will depend on what happens,” said Simon Johnson, a professor at the M.I.T. Sloan School of Management. “If she doesn’t get on the banking committee, then she’ll take a more outspoken approach.” He said that Democrats as a whole had not followed through on several issues of financial reform, so “it matters a great deal” where Ms. Warren is assigned. “Not putting her on banking would make the Democratic Party look like a creature of Wall Street, which, by the way, it is,” Professor Johnson said. “But they don’t like to be too explicit about it.”

Katharine Q. Seelye, "New Senator, Known Nationally, Sometimes Feared", in The New Yorks Times, 10 November 2012.

Cynicism

My children tell me that I am very cynical, so when they confront some evidence of a younger me--in my writing or the writing of friends--who comes across as naive and trusting, they seem surprised. Of course, our children never really know us, do they? They weren't witness to many of the events (our own failings as well as the failings of others) that transformed us over time--either because they were not present or because they were too young to understand what was going on. I'll admit that a little bit of faith in humanity remains in me, but in the last several years, that bit of faith has received a beating.

The Republicans taking hostage of the debt ceiling is a big disappointment; I mean, they didn't have difficulties with debt ceilings under President Bush. Why so recalcitrant now? (That's a rhetorical question). But the treatment of Elizabeth Warren by Republican Congressmen is in a category by itself, I think. Or maybe not. Given some thought, I could probably come up with other similar examples. Here is a very smart woman who speaks plainly and who has worked to help make financial matters more transparent to consumers, that is, people such as I.

Here is Elizabeth Warren speaking on those credit card contracts that none of us can understand:
"Elizabeth Warren on Credit Card 'Tricks and Traps'," at Now, online, 2 January 2009.

Here she is talking about bankruptcy caused by medical bills and "aggressive hospital collections":
Interview 1
Interview 2

Here she is talking about subprime mortgages in 2004--raising the alarm before subprime mortgages, bundled up as toxic assets, helped to almost blow up our economy:
on "Books of our Time"

People with this kind of sense, with this kind of concern for ordinary families, evidently have no place in our government, according to the Republicans who refused to accept her as the director of the Consumer Financial Protection Agency. Their condescending questioning and unrelenting demonization of this woman is a travesty of public service.

In The New York Times, Joe Nocera reviews Elizabeth Warren's travails with Republican 'leadership,' in this, her last week with the Consumer Financial Protection Bureau: "The Travails of Ms. Warren," posted on Friday, 22 July 2011.

Here is an example of Warren's own lack of cynicism. She thought that if she could make clear to Congress what the mission of the Consumer Financial Protection Bureau would be, the accusations and demonization would stop:

“I’ve never been an ideologue,” she told me. “And I thought the best way to deal with that perception was to put our vision out there. The vision is clear. Consumers should be able to tell the price and risk of any credit product before they buy it. We want to mow down the fine print. I thought once that was on the table, and it was clear that we were executing on it, the accusations would go away.” Nocera, "The Travails of Ms. Warren"

But: " House Republicans regularly brought her before their committees and acted as if this were the second coming of Joe McCarthy....Republicans would cut off her answers and speak to her in tones ranging from contempt to condescension. The treatment wasn’t just disrespectful. It was ugly. And it never stopped."

As I have stated in a previous post, I would have loved having an Elizabeth Warren looking out for my interests. Unfortunately, bankers and financial institutions have far more money than I have and far more influence over those Republicans who made sure that Elizabeth Warren would never direct the agency she was responsible for helping to create.

It's a real shame. Add another coin to my cynicism bank.

Depressing if True

William Greider, writing for The Nation, seems to think that while Republicans have certainly done their best to demonize Elizabeth Warren, there are folks surrounding President Barack Obama who also don't want this candid woman to chair the Consumer Financial Protection Bureau. Greider's information relies on a Very Reliable Source, unnamed, so who can really tell how accurate this is. But based on what I've read about the financial industry and how all those finance guys seem to end up in positions of power around the presidency (including Obama's), I wouldn't be surprised. Here's a quote from Greider:

Tim Geithner, said my Very Reliable Source, really, really doesn’t want Elizabeth Warren in the position where she is sure to be a tough-minded and independent voice on major financial-policy issues. As CFPB director, Warren would also sit on the new “systemic risk” council of regulators who decide very large questions like “too big to fail.” The other regulators can outvote her easily enough, but Warren has an alarming history of personal candor. She says what she thinks, out loud and in public. That naturally disturbs the club members, all of whom have a rank history of making life easier for the big boys of banking.

Warren made her integrity clear when she served as chair of the Congressional Oversight Panel digging into the financial crisis and bailouts. Her investigations turned up alarming facts the bankers and bank regulators wished to avoid. Furthermore, Warren was often dissenting on legislative issues Geithner and team were pushing in the congressional debates on financial reform. Geithner doesn’t tolerate contrary thinkers in his midst; witness the galaxy of Wall Streeters he recruited to run the Treasury department. Geithner is a favorite of the president’s, perhaps because he is absolutely faithful to the financial establishment’s best interests. [William Greider, "Why is Obama Dragging his Heels on Appointing Elizabeth Warren to head CPFB?," The Nation, 27 May 2011.]

I don't know the answer to the question in the title of Greider's article, and I'm no expert. But I've read enough about the economic crisis to know that we can't blame just one political party for all the deregulation that eventually led to the risks that the financial industry took and the financial crisis that ensued. Those at the top seem to cover each other's backs very well. Just sayin'.

David Corn, an editor for Mother Jones and a former editor of The Nation, described the distance between Timothy Geithner and Elizabeth Warren in this article on HuffPost's "Politics Daily," in 2010. Here is a quote from Corn's article: "Elizabeth Warren Vs. Timothy Geithner: A Big Decision for Obama."

As head of the bailout oversight panel, Warren has fiercely called out Geithner and Treasury on a number of fronts: for providing a backdoor bailout to AIG, for botching homeowner relief programs, for failing to get mega-banks to resume lending. Moreover, she's an articulate and thoughtful populist, who applies a Main Street-first perspective toward financial matters and who has been a scourge of credit card companies and banks. Geithner is a member of the Big Finance establishment; he's no crusader.

It would be nice to have an "articulate and thoughtful populist" on one's side.