[lbo-talk] Warren has more rule-making power than people thought?

Michael Pollak mpollak at panix.com
Thu Nov 18 18:46:06 PST 2010


[Maybe yes, maybe no. But it always makes me feel warm and hopeful when the fat boys are nervous]

http://blogs.wsj.com/washwire/2010/11/18/elizabeth-warren-plenty-of-power/

November 18, 2010, 3:53 PM ET

Wall Street Journal Blogs: Washington Wire

Elizabeth Warren: Plenty of Power

By Victoria McGrane and Maya Jackson Randall

Just how much muscle the new Consumer Financial Protection bureau and

its temporary leader, Elizabeth Warren, have before it gets its full

powers and a permanent director next year is a matter of some angst in

Washington and on Wall Street.

On Thursday, a key Treasury official said that Ms. Warren and her

fledgling bureau have quite a bit of authority including the ability to

start the rule-writing process. The bureau can engage undertake

studies, solicit feedback from the public and I think even putting out

proposals, Treasury's General Counsel George Madison said at a

luncheon.

The bureaus current power does not, however, extend to issuing final

rules, he said. Treasury Secretary Timothy Geithner has set July 21,

2011, as the date the consumer agency will receive all of the consumer

protection authority from existing federal regulators, making that the

target for having the bureau up and running at full speed.

Mr. Madison said he expects a permanent director to be named by then.

President Barack Obama tapped Ms. Warren, a Harvard law professor who

has been urging such an agency for years, to launch the bureau, but it

remains unclear who he will nominate as its first official director.

But Mr. Madisons comments to the Women in Housing and Finance suggest

that the bureau -- which has broad new powers to write rules for

mortgages, credit cards and other financial products -- can do most of

the heavy lifting before the so-called transfer date, a prospect thats

likely to make many in the financial industry nervous.



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