Melissa Bean Floated As CFPB Head

The first head of the Consumer Financial Protection Bureau could be Wall Street-friendly Rep. Melissa Bean, Politico's Morning Money reports, citing "buzz."

[A] possible Bean nomination is not sitting well with reformers on the left who say the moderate Illinois congresswoman is far too close to the banking industry. Said one administration official: "It's not clear she would be acceptable to the reformers."

Bean, an Illinois Democrat whose campaign war-chest is regularly filled by the finance and insurance sectors, is locked in a nail-biter election for her House seat. She trails by a thin margin but as of Sunday, the race was still too close to call. If Bean loses the race and is nominated to head the CFPB (which Elizabeth Warren is setting up), she would also have to be confirmed by the Senate.

As HuffPost's Arthur Delaney reported in February, Bean has been called "Wall Street's favorite Democrat," having worked regularly water down regulations on the financial services industry.

A Sunlight Foundation analysis noted last year that Bean had pushed "to remove a provision from the Consumer Financial Protection Act that would allow states to craft stronger consumer protections. The move is backed by national banks and trade groups like the Chamber of Commerce. Bean has received over 40% of her 2009 campaign contributions from the finance, insurance and real estate sector." Indeed, in 2008, Bean received more money from the Chamber of Commerce than any other House incumbent.

Matthew Yglesias, a progressive writer, argued today that a Bean appointment would ruffle feathers on both sides of the aisle. "Melissa Bean for CFPA would be a classic Obama 'angers base fails to appeal Republicans' move," he tweeted.

FireDogLake's Jane Hamsher is particularly angry, writing that the Bean proposal is "one of the most morally and politically bankrupt ideas of all time."

A spokesperson for Bean cautioned that speculation about a CFPB nomination is premature: "This race remains too close to call, and we are staying focused as this election process continues. With every passing day the vote margin continues to shrink, and it is premature to speculate what Congresswoman Bean might do next when election returns are incomplete and ballots are still being counted."

Comments

[EdCorner]

11:38 PM on 11/09/2010

If Obomba doesn't appoint Warren as head of the CFPB, that will be the final straw in my eyes and he will not get my vote in 2012. I will do everything I can to support his opponent, ie.. Dr. Ron Paul IMHO.

[Giverny]

09:34 PM on 11/09/2010

Elizabeth Warren, Elizabeth Warren, Elizabeth Warren!!!

[rory talbot]

08:56 PM on 11/09/2010

Before I read this, I thought there was no way I could be MORE disappointed by the corporatist Obama Administration. Well...congratulations, I more disappointed. Everyone here knows Obama will choose Bean. That's a fact. He only threw us a bone (Warren) close to election time to help overcome our enthusiasm CANYON. I knew he was Lucy with the football.

[BroadwayJoe]

05:23 PM on 11/09/2010

Remember, folks, the "parties" are not really interested in Main Street America. Both are controlled by one master -- Wall Street -- so this FinReg sham is just that (a sham).

Remember "Lord of War?"

"I sell to leftists, and rightists. I sell to pacifists, but they're not the most regular customers."

[BroadwayJoe]

05:19 PM on 11/09/2010

What have I been saying all along about the CFPB? Read my posts. It's a sham, just like FinReg. It is in the interests of both parties to slavishly cater to their corporate masters on Wall Street. Doesn't matter if it's a Dem or Republican president. I hope the few principled Senators (e.g. Bernie Sanders) that are left in the Senate stop this Melissa Bean fiasco. I also hope they go back and try and create a more meaningful FinReg bill.

[dmsdzinr]

03:24 PM on 11/09/2010

IF they are going to hire ANOTHER Wall Street Crony, WHY EVEN BOTHER?! Give Americans what they WANT & NEED. Give Americans Elizabeth Warren!!!!!

[Job Sanders]

01:00 PM on 11/09/2010

This might sound terribly cynical, but it's true: whomever heads the agency will most likely be just another brick-in-the-wall wonk. They'll have to be, apparently, to survive the confirmation process in this polarized political environment. The CFPB will then sit idle like all other regulatory agencies, and all will be caught asleep at the wheel for the next crash, not far down the road.

[kimbanyc]

12:48 PM on 11/09/2010

PLEASE NO NOT BEAN

[ched]

12:27 PM on 11/09/2010

Sourcing the story to "Buzz" = made up story, possibly created by the soon-to-be retired Bean herself, looking for something to do after her constituents fire her.

[Dennis Yuen]

10:09 AM on 11/09/2010

The good news is that it will not be a Republican who will run the CFPB. The bad news is that we might get the next worst thing, a "Wall Street's favorite Democrat", might.

Why is anyone other than Elizabeth Warren being considered to head the CFPB?

[plooger]

10:03 AM on 11/09/2010

If the Obama Admin actually floated Bean for CFPA then can we please end the speculation as to why Democrats lost in 2010?

[SUPPERMAN]

05:38 PM on 11/09/2010

Can't hurt the GOP feelings, my GOD they might cry!

[EdCorner]

08:01 PM on 11/09/2010

And why they'll lose in 2012 too.

[AZreb]

09:27 AM on 11/09/2010

You ask what happened to Elizabeth Warren? Another "compromise" by the administration. She was not nominated to head the commission, since that might have meant that the administration would have to actually fight for her approval. Instead, she was put in charge of "setting up" the commission and has to report to Geithner - need I say more?

As a left-leaning Independent, I feel that I have been sold down the river by this administration. Too many acts like this one - not putting up a real fight for DADT - more mercenaries hired by the CIA and State Department - too many promises not kept - watered down policies that could have meant more help for our country and people. Yes, I know it has been a little less than two years, but there are too many inconsistencies in this administration and I now look for the "maybe" and "possibly" in all announcements.

[plooger]

10:04 AM on 11/09/2010

yep

[kewps]

03:19 PM on 11/09/2010

Right on! F&F! From another left-lean independent.

[yougg]

08:57 AM on 11/09/2010

This is discouraging.Who is Melissa Bean and where did she come from? What happened to Elizabeth Warren? We need creditable financal reform. Wish Geithner would go.

[stagebandman]

12:13 PM on 11/09/2010

She's been my representative for quite a while, now, and, for the most part, I've been very happy with her service. I was disappointed in her vote on the unemployment benefits extension, and that may have cost her this election, as many Cook County Dems just didn't vote for anyone in that race. Other than that, though, she was VERY reachable, had many, many old fashioned public meetings, often at supermarkets, so not exactly an elitist.

Still, I'm in Elizabeth's corner for this position. I'd much rather see Melissa prevail in the election.

[mickcastillo]

02:30 PM on 11/09/2010

F & F! I feel the same way! Geitner has got to go if we want anything concrete coming out of reforming the financial industry! There should have been a fight for Prof Warren to head the industry as it would have been a way to bring the Republicans to task. This continued, or semblance of, pandering to Republican support is digging us deeper into the hole.

[politicalguy94]

07:33 AM on 11/09/2010

Just who floated the idea of nominating Melissa Bean? For the CFPB to be as effective as possible, a tough, pro-consumer candidate who won't suck up to Wall Street is needed. Anyway, Rep. Bean would be better off keeping her Republican-leaning swing district in Democratic hands rather than being head of the CFPB.

[PhilipTaylor]

05:53 AM on 11/09/2010

WHAT IS GOING ON WITH WARREN?
WHY would we want another WALL STREET CROOK when we have the FED?