Since Elizabeth Warren, the TARP overseer who is being considered to lead the new Consumer Financial Protection Bureau, has been meeting with bank lobbyists to discuss her views on consumer-protection issues, it seemed worthwhile to find out how the financial sector views Warren. Concept Capital, a firm that provides a variety of support services to investment funds, released a research note [PDF] on the relative merits of Warren and Assistant Treasury Secretary Michael Barr, another top candidate for the post.
"We increasingly see Elizabeth Warren as a better choice," the firm's analysis concludes, suggesting that Barr might be a more effective antagonist to industry because he is perceived to have better relationships on the Hill and is less involved in political debates, while at the same time inevitable pressure from progressives would force him to take a stronger line out of the gate. Warren's supporters pointed me to this item:
The argument has often been that only President Nixon – an avowed anti-communist – could open the door to relations with China. This is because the right could never accuse him of being soft on communism. Well the same could be true for Warren. If Barr tried to take a middle-of-the-road approach, progressives might attack him for being too friendly to industry. We have trouble seeing progressives attack Warren.
This is all speculation, even if it is informed, but it paints an evolving picture of Warren, suggesting that industry observers are adjusting to the likelihood of her nomination. Regardless, Progressives can take some solace from one line in the report:
Of course, the best case scenario is that the President names neither Warren nor Barr to the post and instead picks someone with industry experience. We just see very low odds for that outcome.
-- Tim Fernholz
