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Robert Kuttner

Robert Kuttner

Posted: September 16, 2010 10:10 AM

Warren: A Huge Win

What's Your Reaction:

The early Administration leaks about Elizabeth Warren serving as an "interim" appointee to set up the Consumer Financial Protection Bureau were equivocal. In one version of the story, she would be a counselor to Treasury Secretary Tim Geithner. In others, this appointment would be an alternative to her even being considered for the job on a permanent basis -- a wink and a nod to the financial industry.

But that scenario turned out to be wrong, and underestimated Warren's own tenacity. It is now clear that the indefatigable Warren will be both a senior presidential adviser with direct access to Obama when she needs it, as well as a Treasury employee. In an administration dominated by Rubinistas, Warren will literally be the first financial progressive with both a personal connection to the president as well as an independent power base.

This strategy is a win-win, on several grounds. It gives Warren full authority to set up the agency, without having to run the gantlet of confirmation hearings and a likely Republican filibuster.

This way, Warren will be able to get the agency quickly up and running in a manner that serves both consumers and progressive politics. Early directives to bring greater simplicity and transparency to credit documents will be extremely popular. Politically, the carping by the banking industry and its Republican allies will remind the public which side the GOP is on.

This will take a lot of the wind out of the Republican claim that they opposed the bailout and share popular backlash against Wall Street. It will belatedly put the administration vividly on the side of regular Americans when it comes to banking issues.

And as Warren continues to be the remarkably popular champion of struggling families, it will become more difficult to deny her the job on a permanent basis if she wants it. And it will be more costly, even for a more Republican senate in the next Congress, to make her their nemesis.

Those like Sen. Chris Dodd who claimed Warren had little experience running things underestimated the lady. They certainly underestimated her as an astute political player. This appointment was delayed for several weeks because extensive discussions were necessary to produce terms that worked for both the White House and for Warren personally.

Credit for this victory is should be shared several ways. The progressive movement did not relent on this one. Denying Warren the job would have been a demoralizing slap at a Democratic activist base that was already in a state of near-despair.

It is hard to recall another case when a public pressure campaign for a particular nomination, with the tacit support of the would-be nominee, did not backfire. This success signals progressives to keep prodding Obama to be the leader we hoped we were electing.

Shahien Nasiripour in Huffington Post also gets credit for being the first one to suggest this interim tactic, back in July.

Credit also goes to President Obama himself. Despite nay-saying from the wing of his administration that is too cozy with Wall Street, the president is a good enough politician and has enough progressive instincts to recognize the Warren appointment as shrewd politics and smart on the merits.

But the most credit goes to Warren herself, for never pulling her punches either as head of the Congressional Oversight Panel or as a broader spokeswoman for financial reform. In an age of few progressive heroes, it took amazing combination of persistence, principle, political shrewdness and personal grace to make herself the indispensable woman.

Robert Kuttner is co-editor of The American Prospect and a senior fellow at Demos. His new book is "A Presidency in Peril."

 
 
 
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11:00 AM on 09/18/2010
it never ceases to amaze me that people vote against their own interests time and again especially when it directly supports the looting of their own savings, their futures and their children's children's futures.

We have just been raped by the banksters, the wealthiest neocon elite, and the corportists into the Greatest Redistribution Of Wealth in History! UPWARD! TO THE WEALTHIEST FEW!

They need to be prosecuted, have their stolen Trillions clawed back, and given cold seats next to their buddy bernie for the next 150 years.

Wake Up! This is the 2nd Great Depression.

I understand the apologists for the rapists and trolls on this thread because they are either paid minions, suckling on the wealthy teet, or dreaming they can join the ranks of the rapists.

America needs one honest, intelligent, well spoken person in D.C. Then we need many more of them in a new Progressive Party. We sadly learned that Obama is just another corportist and is manipulated by the neocon wealthy elite the moment he appointed little timmy, summers, put rubin in an advisory position, and supported bernanke's reappointment.

Elizabeth for President.

Fire geithner, summers!

Audit the Fed with no restrictions and continuously.

as greenspam said, "If I've made myself too clear, you must have misunderstood me."

"Alan Blinder... noticed was "how quiet my office was, how few people came to see me". The Fed was run, he realised, not by its appointed board, but by the chairman and the barons."
03:34 PM on 09/17/2010
Geez Louise -- so much pessimism about the Warren appointment.

IMO the only aspect of this announcement that necessitates curbing our enthusiasm is believing that this somehow means Obama and his administration have turned a corner in terms of embracing progressive ideas. I say let's support, encourage and have EW's back in standing up to forces that may be rayed against her and keep Obama's feet to the fire. Don't allow Obama to think all is well between he and the progressive community because of this one act that may be as much a midtern elections political calculation as it is a true reflection of his policy agenda.
12:47 PM on 09/17/2010
Remember Brooksley Born? If not, google her to avoid a pending dejavu; Born was an astute public official that tried to blow the whistle on Wall Street's trading of derivatives, but was marginalized by her superiors. Regardless how you spin the Warren "appointment," she faces the exact same boy's club that undermined Born. Warren's CFPB will be allowed token achievements—maybe regulating payday loans, I even heard they might get tough on gift cards—but will remain far less influential than the prevailing Wall Street interests that "run the place" in DC. A huge win? More like another consolation prize for anyone that believed in hope and change.
03:21 PM on 09/17/2010
I think you should take a more wait and see perspective before you totally write-off Warren as a token.

I don't think she will allow herself to be anyone's token. If they try to force her into tokenism I think she'll go public with that and rally public support to put the kabosh on that.

I think you seriously underestimate EW if you think she will allow herself to be used as a political pawn.
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HUFFPOST PUNDIT
jsgaetano
Semper Fidelis Tyrannosaurus!
10:36 AM on 09/17/2010
I wouldn't start cheering just yet.

This sounds more like how Obama and the Rahmpublicans can sideline Warren and fool us again.  They will probably give her a job with a really great sounding title... then ignore her for the next six years.
10:07 AM on 09/17/2010
I'm wondering. Exactly what power to protect consumers is she actually going to have? There are laws already in place to protect consumers, why don't we just enforce those? What more is she actually going to accomplish. I mean other than establishing another government agency, a few thousand more employees, more government waste & spending...you know, the usual.
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HUFFPOST SUPER USER
sposton
right to tell what they don't want to hear
09:59 AM on 09/17/2010
Robert Kuttner makes a mistake underestimating the powers stacked against Elizabeth Warren. She is most likely being used to help motivate the deflated political base. After November election there will be a stiffening resistance against her from within the administration. She is likely to leave with arrows in her back and go back to Harvard.
FreeAmerican7
It's hard to soar like an Eagle around Turkeys!
09:55 AM on 09/17/2010
I read all the "writings" regarding Elizabeth Warren and I am surprised that NO ONE has mentioned the 2 words that count:
"SUPREME COURT" !!??!!??!!??!!??
Remember the POLITICALLY appointed Supreme court Justices who are SERVING ONLY the POLITICIANS who appointed them for life?
Remember that the POLITICIANS (elected or defeated) serve the Special Interests Lobbyists !
The "SUPREME COURT" legalized the unlimited BRIBING of corporation to the POLITICIANS !
Consumers! you are going to win....LOL.... just as the War on POVERTY was won...LOL...
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HUFFPOST SUPER USER
WFWS
Proud Liberal
10:23 AM on 09/17/2010
Great point, I think. The recent Supreme Court decisions have been almost overlooked by the media. They essentially allow anything that isn't outright fraud to be allowed. All the slippery ways that lobbyists use to influence politicians that used to be illegal are now mostly OK. Only outright fraud is against the law. Its FAR easier to corrupt politicians now.
Media didn't cover that, even here on the Huff. I think I'll google those decisions and see what's up.
08:37 AM on 09/17/2010
"This success signals progressives to keep prodding Obama to be the leader we hoped we were electing."

Wait a minute, a couple of days ago I asked progressives here if Obama was the man they thought they were getting and you said yes. So he really isn't after all? You guys are so confus (ed) ing.
09:42 AM on 09/17/2010
Depends on who you ask. Some people were realistic in their expectations, some weren't. If you ask a large group of people a question, you may get a complex range of answers. Imagine that.
12:51 PM on 09/17/2010
I did ask a large group of people and got mostly the same answer. There was nothing complex about it, just knee-jerk reactions that sounded the same.
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HUFFPOST BLOGGER
Lowell Thompson
Artist, writer, recovering adman
07:38 AM on 09/17/2010
Wait a minute. Is Obama appointing a woman named Elizabeth Warren or Jesus Christ?

Even if it was JC himself, how far could he carry the cross the naive are already burdening Warren with?

Remember, it was this kind of gullibility that helped get us into the mess we're in. Remember the Audacity of Hope and a "black" guy on a white horse named Barack?

The only savior this time is US. The only question is, are we ready yet for self government?

Right?

http://buythecover.com
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HUFFPOST COMMUNITY MODERATOR
RichPort
Don't blame me, I'm a stoned head...
07:32 AM on 09/17/2010
I can see it now... in three months half of you will claim betrayal because she hasn't fixed everything yet...
researcher
researcher
04:45 AM on 09/17/2010
she is being used as a pawn to attain demo votes in nov

even you fell for it.
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HUFFPOST SUPER USER
jabailo
(Participant) Texeme.Construct()
03:29 AM on 09/17/2010
You don't need a Superwoman.

All you need is to start enforcing the existing laws.

Obama has had 2 years to get his act together.

Why can he just do the job instead of having some "bold new plan".

Enforce the laws as written...
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HUFFPOST SUPER USER
WFWS
Proud Liberal
10:27 AM on 09/17/2010
Existing laws, like the ones that allow interest rates over 30%? Existing laws like the ones that allow billing cycles that aren't monthly, and change, and are designed to get you to fail to make payments on time? Existing laws like the ones that allow bait and switch in the signing room at mortgage lenders?
No, sorry, we need both new tougher laws and far more enforcement. And penalties that take the color out of the skin of finance corporations when they get hit with them.
Free market my arse.
nothing2fear
They only call it Class War when we fight back.
03:20 AM on 09/17/2010
I enjoyed that read.

So Warren got it, good. I was afraid that they would blow another one.
HUFFPOST SUPER USER
Trublulu
01:11 AM on 09/17/2010
Oh, come on! Quit being so negative about the Warren appointment to head the new Consumer Agency. You people just love to rag on every move this president makes. I am tired of this constant "blame the Democrats for not being Progressive enough" from the Left, along with "the President is a Socialist, Communist, Facist, Muslim, etc., etc," from the Right. While you folks keep yapping about every presidential flaw, real or perceived, this one single man represents our country, and by dragging him down, you continue to drag down the nation. Oh, I know you don't care and your agenda is more important, but the Warren appointment is huge. Can you imagine any Tea Bag/Republican selecting Warren or even considering a workable protection agency for consumers? So relax, just for a moment, take a deep breath, and contemplate the possibility of a real fighter having a high government position working for the American consumer.
01:07 AM on 09/17/2010
This executive action taken by the Obama administration can re-ignite the progressive base, after two years of malaise. I think the rally on 10/30/10 at the Washington Mall can be the place and time to bring the union back from the brink. If the crazy and inept people whose freights are being paid for by the corporate elite, get to grab seats in the Congress, this country will go back into a bigger rabbit hole of Wall Street corruption, corporate influence peddling and corporate price gouging. This potential majority on the right promises to bring the country to a standstill until 2012. Hooray for the Obama administration for recognizing the progressive belief in Warren and put her in place to fight for the American middle class. And hooray for the shot in the arm at this time.
01:41 AM on 09/17/2010
Obama's top CONTRIBUTORS WHERE CORPORATE ELITES. HE IS AN ELITE. Get over you R vs D mentality, and wise up.
03:27 AM on 09/17/2010
Yes, the Presidents club is an an elite one. However, Obama is a fully self-made man coming from humble beginnings. He worked hard enough to get into Harvard, earned the position of President of the Law Review and was a constitutional law professor. That's exactly the kind of elite background and education we should have in a President. Got any more talking points to sell us? Your telling use of caps indicates a fear based anger that the people might actually reject the media and rightwing prophecy and get out to the polls in November to vote for progress.
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aacme
My micro-bio is on a strict need-to-know basis.
04:05 AM on 09/17/2010
Wise up and what? Vote Republican? Not vote (same thing)?