Incoming Freshman Senator Elizabeth Warren (D-MA) was a Professor of Law, at Harvard, specializing in Bankruptcy Law. She also worked on implementing the Dodd-Frank Legislation, which was formed after the Banking Industry contributed, in a very large, way to the Financial Melt-Down of 2007-2009. Her Brain-Child that she spearheaded implementing was the CFPB (Consumer Financial Protection Bureau), which stands behind Consumers against the Financial Services Industry.
Republicans in the Senate fought to quash any thought that President Barack Obama would appoint Prof. Warren to be the First Director of that Agency. She would have been the best candidate for the job; however, the Financial Services Industry was totally afraid of what she could do. They rolled-out every one of their Lobbyists in a pre-emptive campaign. As a result, so far, Big Banks have only gotten larger, still take-on considerable trading risks, have insufficient “Tier I” Equity Capital, expect to be bailed-out–since they are Too Big to Fail (TBTF)–but insist that they should still get their exorbitant bonuses.
As the linked NY Times Editorial notes, the Republican Senators are concerned now about having Sen. Warren on the Senate Banking Committee, due to her intimate knowledge of the Banking Industry and the Bankruptcy Laws. Obviously, the Banking Industry Lobbyists especially are, once again, out full strength. Senate Majority Leader Harry Reid (D-NV), however, is the one making such appointments for the Democrats.
I have written Blog Posts in the past, warning that the Banking activities now are even worse than they were before the recent “Great Recession”. They need to be broken-up, separating the protection of Consumer Deposits from Trading Risks. I intend to Email Sen. Reid to encourage him to appoint Sen. Elizabeth Warren to the Banking Committee.