On Friday, we saw a brewing contretemps between Treasury Secretary Tim Geithner and TARP watchdog Elizabeth Warren. Warren, the Harvard Law professor who is a central advocate of the financial-reform bill's Consumer Financial Protection Bureau, is seen as a likely nominee to lead the new agency. Reports arose that Geithner opposes Warren's nomination, leading to harsh words from reformers about the administration's commitment to consumer protection. Now, in a TAPPED exclusive, a source friendly to Warren passes on this video of Warren talking about Geithner and consumer protection at a conference this weekend put on by the pro-reform Roosevelt Institute:
Warren defends the administration's record on consumer protection; throughout the legislative process, consumer protection was probably the only portfolio that reformers could count on the administration to aggressively push.
Just as Warren's political allies increased her profile in Washington with stories that she was considering a run in last year's Massachusetts Senate election, there is a messaging operation urging the president to appoint her to head the CFPB. Congressional Democrats are well behind the effort and see the likely opposition of the financial sector and Republicans as a benefit to their party; consumer advocates feel that Warren is the most qualified for the job, and though she does not have extensive management experience, most are confident that experienced deputies can solve that problem -- Warren's big-picture vision and strong communications skills are more important for setting the tone at the new agency.
While stories highlighting a conflict between Warren and Geithner, something of a bete noir on the left, have increased excitement about her in the progressive base, Warren is trying to push back against the conflict narrative: A widening rift could damage her chances to gain the CFPB job. While Warren has been unhesitant to criticize the administration's policies when she sees them failing American families, the relationships she developed working with the administration on consumer issues will be important if she is tapped to lead the new consumer protection bureau.
-- Tim Fernholz
