Banks and quasi-banks will need to face up to a long history of having done everything within their power to take advantage of consumer–basically unfair, deceptive and abusive practices. The American Banking Association will resist the CFPB with all its resources which are plentiful. This is not unlike insurance companies’ campaign against the Affordable Care Act. Those of you who have moved your money to credit unions will find these institutions to be delighted to have a level playing field for a change. It will be interesting to see how this is played by Republican candidates over the coming weeks as they extend their righty-reach. It’s red meat for them. Let’s hope they take the bait.
A parallel: The Affordable Care Act may not be all it could have been had it not been for mountainous opposition from the health care insurance industry and the politicians who did its bidding. But Obamacare is a good start and will be improved in the future. 2014 will be huge.
Ditto for the CFCB. Richard Cordray will prove to be a tenacious, pragmatic leader of financial reform. He will go after predatory banks aggressively having successfully sued to win billions from AIG, Bank of America, and other banks as he did as Attorney General.
As for Elizabeth Warren, the needs, desires, and futures of the ninety-nine percent are going toe-to-toe with Wall Street’s chosen son, Scott Brown. Warren has provided much of the intellectual foundation for the 99% movement and the Consumer Financial Protection Bureau. She has positioned herself as a door-to-door, plain-spoken politician who champions middle America as well as anyone does today.
The result of this senate race will matter greatly. Brown sucked up to the Tea Party and gets big bucks from the Koch Brothers and Dick Armey. The major insurance companies can’t seem to give him enough money-though they certainly are trying. Bowing to the current reality in Massachusetts, Brown endorsed the CFPB this week, realizing Warren continues to extend her lead.