Now I know why Geithner and his buddies allow Liz Warren to keep talking out loud about what has happened in the financial world, and what is still happening.
The progressive left loves her, and I must admit, she does have some financial common sense stances that I agree with.
In the following video from NRN, she speaks of a loophole put in the bankruptcy law passed in 2005 that was left wide open when Dodd and Frank wrote the next chapter in “financial regulation” that works the system to protect the insiders and screws the taxpayer.
Here’s a very interesting backstory on Geithner vs. Warren when it comes to the person to head up the new Bureau of Consumer Financial Protection and how the progressives that support Liz Warren would consider her being passed over as yet another betrayal.
Though Treasury has tried to downplay the Warren drama, this is an important moment for Obama. Progressive reformers are already defining a potential rejection of Warren as a White House betrayal. Simon Johnson, the former chief economist of the International Monetary Fund, writes,
This can now go only one of two ways.
1. Elizabeth Warren gets the job. Bridges are mended and the White House regains some political capital. Secretary Geithner is weakened slightly but he’ll recover.
2. Someone else gets the job, despite Treasury’s claims that Elizabeth Warren was not blocked. The deception in this scenario would be nauseating — and completely blatant. “Everyone was considered on their merits” and “the best candidate won” will convince who exactly?
He adds, “Failing to appoint Elizabeth Warren would be the straw that breaks the camel’s back. It will go down in the history books as a turning point — downwards — for this administration.”
If Obama dumps Warren, the White House will justifiably enrage reformers and progressives — that is, part of its base. If Obama nominates Warren, the White House will have a major fight with banks and GOPers. “That may be a fight worth having,” a Treasury Department official says, “but that’s up to the White House to decide.” It’s a mighty big decision.