In a statement released on Wednesday, U.S. Senator Ted Kaufman (D-DE) urged President Obama to appoint Elizabeth Warren as director of the newly established Consumer Financial Protection Bureau, saying her experience more than fits the bill of an effective and visionary leader to run the important new agency:
"Elizabeth Warren is the ideal candidate to lead the new Consumer Financial Protection Bureau (CFPB), and I hope very much that President Obama will appoint her to that position.
"The new CFPB is one of the biggest reforms to come out of the Dodd-Frank Wall Street Reform and Consumer Protection Act. It will be a new financial regulator dedicated solely to protecting the interests of consumers. The CFPB will have strong and autonomous rulemaking authority and the ability to enforce those rules for large banks and nonbanking entities like payday lenders and mortgage finance companies. It will also have a dedicated source of funding.
"But the strength and efficacy of the bureau will depend ultimately on the effectiveness of its leadership. It is essential that the director not only be someone with relevant skills and experience in the area of consumer finance, but also someone who is strong and independent with a proven track record of standing up for consumers.
"Given that, Elizabeth Warren would be a superb choice to lead the CFPB. She is a bankruptcy professor at Harvard Law School and a widely renowned expert on consumer finance issues. Professor Warren is also the Chair of the Congressional Oversight Panel for TARP, a role where she has demonstrated her leadership skills as well as her deep and broad understanding of the financial system.
"In addition to her formal credentials, Professor Warren is also the intellectual force behind the new agency. In 2007, she authored an article that put forward the concept, writing "just as the Consumer Product Safety Commission (CPSC) protects buyers of goods and supports a competitive market, we need the same for consumers of financial products -- a new regulatory regime, and even a new regulatory body, to protect consumers who use credit cards, home mortgages, car loans, and a host of other products."
"The financial reform bill signed into law by President Obama last month makes Professor Warren's idea into a reality. The agency has a lot of promise, but it still needs an effective and visionary leader. Professor Warren more than fits that bill."