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Recess Time.
Author: Raine    Date: 01/05/2012 15:36:23

Yesterday we learned the news that President Obama appointed Rich Cordray as the first Director of the Consumer Financial Protection Bureau (CFPB). You can learn more about this new agency and get assistance from it at its website. It's quite impressive.

It is mostly well known that after overseeing the Troubled Asset Relief Program (TARP) , Ms Warren was appointed by the President as the first advisor to help create the CFPB. Basically, she was in charge of building the agency from the ground up in accordance with the Dodd–Frank Wall Street Reform and Consumer Protection Act of 2010.

This is where things get sketchy. Many people wanted Elizabeth Warren to be the first director of this agency. It didn't happen. Some claim that the Obama administration didn't push hard enough to place her in that role -- particularly Timothy Geithner (as head of the U.S. Treasury). One thing is certain, Republicans in Congress and financial institutions were certainly pushing back against her. Many claimed that Obama did not do enough and wanted him to appoint her via what is known as a recess appointment. By the time that opportunity came around, it appeared that Ms. Warren had decided to move on and run against incumbent Senator Scott Brown from the Commonwealth of Massachusetts. From this ABC interview she states:
They’re pushing for changes — they want to rip the engine out of the car before anyone has even driven it around the block once. We had this fight. The fight went on for a year. It was over. There was a vote a year ago. And the vote was that the majority — 60 senators — voted in favor of having this Consumer Financial Protection Bureau — plenty of safeguards put in place, plenty of limits, but ultimately a strong, tough agency that can get the job done. Now there are 44 senators who just want to say, “You know, we don’t like that outcome. So we want to change it. We want you to rip the arms and legs off this agency.” Um, my answer is no. The agency is here to do a job, a job that desperately needs to be done, a job that Republicans and Democrats and libertarians and people who don’t care about politics at all care about — and that is being able to read their financial contracts, know what the price is, know what the risk is, not be overwhelmed with unreadable fine print. That’s what we’re headed [toward] and that’s what I want to see happen.
..snip..

I just want to be really clear about this: The reason we have an agency is because President Obama stood behind it. And all those fights and all those compromises that were put on the table over the last couple of years, he said no — strong independent consumer agency. The reason we don’t have a good strong director in place right now — whether it’s me or somebody else — I lay directly at the feet of those in Congress who voted against this agency to begin with and who are doing everything they can to stick a stick in the spokes to keep the wheels from turning.
With that, Ms. Warren has a very good chance to become an elected official instead of a government bureaucrat. I want to make it clear: I am not using the word bureaucrat in a negative tone. It's more of a way of pointing out some of the interesting comments I have been seeing regarding the Obama recess appointment (now, at this point) and not back when some thought he could do so while Ms. Warren was creating the department. I think it is fair to say, ultimately, Ms. Warren decided that she did not want this job. You will recall, she is a tenured professor at Harvard, and part of the reasons she gave for leaving was that she had obligations to keep in order to remain tenured at the university. Ultimately, thru presidential appointment, she built the agency but was still obstructed at every turn; it was no wonder to me she decided that she didn't want to run it.

The gist of the comments on many blogs is that they are still unhappy that the President didn't recess appoint Ms. Warren and wondering why it took him so long to appoint a head to the CFPB. Let's not forget that he also appointed three people to the National Labor Relations Board. These are important moves.
Like the CFPB, Republicans have spent the past year blocking nominations to the NLRB in an effort to keep the agency from functioning. Those efforts would have paid off soon, since after Craig Becker’s term on the board expired this week, the NLRB would have been reduced to two members, which is the number it had for more than two years from 2008 to 2010. This effectively shuts down the board, since the Supreme Court ruled in 2010 that two members does not constitute a legal quorum, and thus, a two-member board can’t make binding rulings.
(bold-face mine) It's fair to ask why now? Let's examine some possibilities...

For all the many months of criticizing the Administration for not having the fortitude to appoint Elizabeth Warren, it's already clear that she didn't want that job. That said (regarding recess appointments), it is well known that Congress has specifically held pro-forma sessions to prevent this President from doing so. There is a very good Kos Entry giving a more clear context of these recess appointments. It's wonky, but this is the crux of it:
But it's also important to note what gave rise to this consensus. According to the Congressional Research Service (CRS), it's based on Department of Justice briefs dating from the Clinton administration (see this PDF file), filed in cases disputing previous recess appointments. And on the question of just how long a recess had to last in order for a president to make appointments, the answer apparently was: three days. Why three days? That's likely derived from the fact that that's the maximum amount of time that one house of Congress can adjourn without the agreement of the other. So the thinking was that any period shorter than that wouldn't represent a Congressional agreement to adjourn. But more important than the reasoning behind the three-day threshold is the fact that this consensus came out of the executive branch, and was persuasive as an argument for that reason. The legislative branch hasn't had much to say on the subject, and in fact hasn't got much in the way of mechanisms through which to say it. It is, after all, an executive power and not a legislative one. Even the power to declare a recess of the legislature is, ultimately, left within the power of the executive according to Article II, section 3 of the Constitution:

{The president} may, on extraordinary occasions, convene both houses, or either of them, and in case of disagreement between them, with respect to the time of adjournment, he may adjourn them to such time as he shall think proper {...}
...snip...
But just as a final hedge—and in anticipation of questions about "why didn't this happen for Elizabeth Warren?"—I have to add that the rules of situational politics haven't been erased here. An earlier recess appointment, or the appointment of a different person, might very well have played differently. Those dynamics are always in flux, and operate in parallel to the raw mechanics. The point I really wanted to make is that no matter how many times I explain the rules, the truth is that they're made to be broken.
So, we now have a quite competent leader of the CFPB, Rich Cordray. It's not Elizabeth Warren, although it should be noted that she endorsed his nomination.

Critics of the President for not nominating her to the agency say, rightfully, that she is smart, strong, willful and unabashedly unafraid to take on the establishment. Why would they doubt her when she chose to leave a position that is ultimately part of a bureaucracy to run as a representative from her home state? I trust in Elizabeth Warren enough to know she made her decidion based on what is best. I would like other people to do so as well. For those that clamored for her to be given the role based on her integrity and judgement, they should respect her decision to run for Senate for those very same reasons.

I congratulate the President for making these appointments-- even if they are later than people wanted. It's a very big step forward for our nation. With regards to the CFPB specifically, this is also important.
INDEPENDENT UNIT

The bureau will be an independent unit located inside and funded by the Federal Reserve, the country’s central bank. The financial reform law allows the agency to be formed on an interim basis within the U.S. Treasury.

The director must be nominated by the president and confirmed by the Senate to a five-year term.

The bureau will have offices that are in charge of fair lending, financial education, armed services affairs, and financial protection for older Americans, among others.
In other words, now that we have a director, CFPB is independent of the U.S. Treasury (led by Geithner) and only funded by the Federal Reserve. This finally gives this new agency the power it was intended to have. It can now operate under the law as it was intended. With that said...

Onward and upward! Senator Warren, the Junior Senator from the Commonwealth of Massachusetts!

and
Raine
 

40 comments (Latest Comment: 01/05/2012 23:53:22 by Raine)
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Comment by Mondobubba on 01/05/2012 16:31:20
Well said!

Comment by Raine on 01/05/2012 16:35:40
Quote by Mondobubba:
Well said!
Why, thank you! It a lot more wonky than I tend to write -- but I honestly would rather see Warren as a senator.

Then she can be around for more than 5 years. I know this because our dear TriSec is now working to help her campaign!




Comment by TriSec on 01/05/2012 16:41:50
I've come to the realization over the last 6 months or so (and in the wake of another abortive run for office) that I may not be cut out to be a candidate.

However...I'm consistently amazed when I sit and think about it, WHO I know throughout the city. I have connections to virtually every neighborhood, and a significant portion of the elected officials in this city and beyond. I might not be a candidate (In fact, I'm planning on dissolving my committee this month), but I think I might be useful as a network person or dare I say it...power broker?



Comment by Raine on 01/05/2012 16:45:23
Quote by TriSec:
I've come to the realization over the last 6 months or so (and in the wake of another abortive run for office) that I may not be cut out to be a candidate.

However...I'm consistently amazed when I sit and think about it, WHO I know throughout the city. I have connections to virtually every neighborhood, and a significant portion of the elected officials in this city and beyond. I might not be a candidate (In fact, I'm planning on dissolving my committee this month), but I think I might be useful as a network person or dare I say it...power broker?


There is nothing wrong with a power broker if that power is used for good.



Comment by Raine on 01/05/2012 16:47:43
Also, and btw and such, from TP's progress report:
WHY IT’S IMPORTANT: While the CFPB, the brainchild of current Massachusetts Senate candidate Elizabeth Warren (D), has been functioning since Dodd-Frank passed, having its first director will allow the agency to develop and grow into a true vehicle of protection for consumers against predatory Wall Street banks and other financial institutions. Without a director, the CFPB’s ability to prohibit unfair, deceptive or abusive financial practices was limited. Specifically, it was unable to use its authority to oversee non-bank financial institutions like certain mortgage lenders who target vulnerable consumers, check cashers, and payday lenders. Warren was the first choice of many progressives, but Cordray himself is eminently qualified to hold the position — so qualified, in fact, that one attorney who represents the financial industry said Cordray “frightens me the most.” Before he lost his bid for re-election in 2010, Cordray was at the forefront of the foreclosure fraud scandal and was the first state AG to sue a mortgage lender over fraudulent practices. As attorney general, he led efforts to rein in payday lenders. As for the CFPB, it will be tasked with overseeing lenders and financial institutions to prevent the types of predatory practices — like foreclosure fraud, discriminatory mortgage lending, and practices from payday, student loan, and credit card lenders — that cheated and defrauded the American people before and through the recession.
I already figured the blog was long enough -- so I left this out.

Comment by wickedpam on 01/05/2012 16:56:21
Quote by Raine:
Quote by TriSec:
I've come to the realization over the last 6 months or so (and in the wake of another abortive run for office) that I may not be cut out to be a candidate.

However...I'm consistently amazed when I sit and think about it, WHO I know throughout the city. I have connections to virtually every neighborhood, and a significant portion of the elected officials in this city and beyond. I might not be a candidate (In fact, I'm planning on dissolving my committee this month), but I think I might be useful as a network person or dare I say it...power broker?


There is nothing wrong with a power broker if that power is used for good.




Wasn't it Uncle Joe who said "with great power comes great responsiblity"

Comment by Mondobubba on 01/05/2012 16:57:42
Quote by TriSec:
I've come to the realization over the last 6 months or so (and in the wake of another abortive run for office) that I may not be cut out to be a candidate.

However...I'm consistently amazed when I sit and think about it, WHO I know throughout the city. I have connections to virtually every neighborhood, and a significant portion of the elected officials in this city and beyond. I might not be a candidate (In fact, I'm planning on dissolving my committee this month), but I think I might be useful as a network person or dare I say it...power broker?




What you need is a good campaign manager! I can do that! I would require a sizable win bonus thought.

Comment by TriSec on 01/05/2012 16:58:56
Paul Revere gets all the kudos for that little midnight ride of his, but when you dig a bit deeper....he knew everybody that was anybody in Colonial Boston. That's the most important thing, IMHO.



Comment by TriSec on 01/05/2012 17:02:18
And this just in...Joe the Third is eyeing Barney Frank's seat.

Pedigree: RFK's grandson.



Comment by livingonli on 01/05/2012 17:12:36
Good day everyone. Got the last room hooked up for DirecTV so that now we have both cable and DirecTV on every TV in the house then I just figure out where I am going to cut back to save a few bucks. I do realize I don't watch the premium channels as much as I used to.

Comment by livingonli on 01/05/2012 17:13:46
Quote by wickedpam:
Quote by Raine:
Quote by TriSec:
I've come to the realization over the last 6 months or so (and in the wake of another abortive run for office) that I may not be cut out to be a candidate.

However...I'm consistently amazed when I sit and think about it, WHO I know throughout the city. I have connections to virtually every neighborhood, and a significant portion of the elected officials in this city and beyond. I might not be a candidate (In fact, I'm planning on dissolving my committee this month), but I think I might be useful as a network person or dare I say it...power broker?


There is nothing wrong with a power broker if that power is used for good.




Wasn't it Uncle Joe who said "with great power comes great responsiblity"

I think you're confusing him with Uncle Ben since Peter Parker always said he taught him that lesson when he realized that Uncle Ben's killer was the thief he let get away.

Comment by Raine on 01/05/2012 17:18:17
Quote by TriSec:
And this just in...Joe the Third is eyeing Barney Frank's seat.

Pedigree: RFK's grandson.


I have been hearing this rumor for a few weeks now. I do hope it is true.


Comment by Raine on 01/05/2012 17:42:06
Quote by Raine:
Quote by TriSec:
And this just in...Joe the Third is eyeing Barney Frank's seat.

Pedigree: RFK's grandson.


I have been hearing this rumor for a few weeks now. I do hope it is true.
NYT reporting this is well.


Comment by Raine on 01/05/2012 17:54:36
You know I like Keith Olberman, right? I do, but this just doesn't bode well for me.

I was wondering what was going on with him not on the air Tuesday night. I still am wondering -- I refuse to watch Cenk Uygur altho I was tempted to watch knowing tha tAl Gore would be on air.
Patricia Glaser, the Hollywood litigator who represented Olbermann during his exit from MSNBC and his subsequent hiring by Current, tells THR that conversations between the Olbermann camp and Current have begun over his role with the network.
(snip)


“I was not given a legitimate opportunity to host under acceptable conditions,” Olbermann said in a statement to THR on Wednesday. “They know it and we know it. Telling half the story is wrong.”

But an internal memo from Current TV president David Bohrman obtained by THR contends that Olbermann was asked to lead primary coverage. Regardless, Cenk Uygur, Jennifer Granholm and network co-founder Al Gore have been helming the network's election specials. And Tuesday, Olbermann's Countdown was pre-empted for live coverage of the Iowa caucuses.
What is going I do not know. but this doesn't look very good for his future prospects, not to mention his 'Current' situation.

Olbermann is said to believe that he controls the 8 p.m. time slot in which is program airs, but Current is said to want influence over how the network covers special events like the primaries. Olbermann also has expressed his displeasure with the level of influence he has been given over the hiring of other Current hosts. Glaser declined to comment on the specifics of the negotiations.


Comment by wickedpam on 01/05/2012 18:20:00
Quote by livingonli:
Quote by wickedpam:
Quote by Raine:
Quote by TriSec:
I've come to the realization over the last 6 months or so (and in the wake of another abortive run for office) that I may not be cut out to be a candidate.

However...I'm consistently amazed when I sit and think about it, WHO I know throughout the city. I have connections to virtually every neighborhood, and a significant portion of the elected officials in this city and beyond. I might not be a candidate (In fact, I'm planning on dissolving my committee this month), but I think I might be useful as a network person or dare I say it...power broker?


There is nothing wrong with a power broker if that power is used for good.




Wasn't it Uncle Joe who said "with great power comes great responsiblity"

I think you're confusing him with Uncle Ben since Peter Parker always said he taught him that lesson when he realized that Uncle Ben's killer was the thief he let get away.



that's it! I knew it was someone's Uncle

Comment by Mondobubba on 01/05/2012 18:32:09
Quote by Raine:
You know I like Keith Olberman, right? I do, but this just doesn't bode well for me.

I was wondering what was going on with him not on the air Tuesday night. I still am wondering -- I refuse to watch Cenk Uygur altho I was tempted to watch knowing tha tAl Gore would be on air.
Patricia Glaser, the Hollywood litigator who represented Olbermann during his exit from MSNBC and his subsequent hiring by Current, tells THR that conversations between the Olbermann camp and Current have begun over his role with the network.
(snip)


“I was not given a legitimate opportunity to host under acceptable conditions,” Olbermann said in a statement to THR on Wednesday. “They know it and we know it. Telling half the story is wrong.”

But an internal memo from Current TV president David Bohrman obtained by THR contends that Olbermann was asked to lead primary coverage. Regardless, Cenk Uygur, Jennifer Granholm and network co-founder Al Gore have been helming the network's election specials. And Tuesday, Olbermann's Countdown was pre-empted for live coverage of the Iowa caucuses.
What is going I do not know. but this doesn't look very good for his future prospects, not to mention his 'Current' situation.

Olbermann is said to believe that he controls the 8 p.m. time slot in which is program airs, but Current is said to want influence over how the network covers special events like the primaries. Olbermann also has expressed his displeasure with the level of influence he has been given over the hiring of other Current hosts. Glaser declined to comment on the specifics of the negotiations.



In the context of his entire career, that makes sense. KO is famous for his massive ego.

Comment by TriSec on 01/05/2012 18:32:35
I have some motion on an interview I did back in November...they want to talk to me again!

Comment by Raine on 01/05/2012 18:35:58
Quote by Mondobubba:
In the context of his entire career, that makes sense. KO is famous for his massive ego.
That Ego may very well put his career to a halt, I fear.


Comment by Raine on 01/05/2012 18:36:39
Quote by TriSec:
I have some motion on an interview I did back in November...they want to talk to me again!

Excellent!

Comment by Mondobubba on 01/05/2012 18:56:48
Quote by Raine:
Quote by Mondobubba:
In the context of his entire career, that makes sense. KO is famous for his massive ego.
That Ego may very well put his career to a halt, I fear.


Indeed, it very well might.

Comment by wickedpam on 01/05/2012 19:17:21
Quote by Raine:
Quote by TriSec:
I have some motion on an interview I did back in November...they want to talk to me again!

Excellent!



woohoo!

Comment by TriSec on 01/05/2012 19:22:16
Note to Keith: for the level of control and influence you're asking for...you're going to need to start your own network. Sorry, I don't think there's any other way.


Comment by TriSec on 01/05/2012 19:52:24
Comment by Raine on 01/05/2012 19:53:46
Quote by TriSec:
Note to Keith: for the level of control and influence you're asking for...you're going to need to start your own network. Sorry, I don't think there's any other way.
*ding*

I am thinking that as well. It's normal for political programs to be pre-empted for events such as primaries and caucus', elections etc.


Comment by BobR on 01/05/2012 19:54:06
Quote by TriSec:
I have some motion on an interview I did back in November...they want to talk to me again!



Comment by Raine on 01/05/2012 19:59:40

Editor's note: Gen. Michael V. Hayden, who was appointed by President George W. Bush as CIA director in 2006 and served until February 2009, is a principal with the Chertoff Group, a security consulting firm. He serves on the boards of several defense firms and is a distinguished visiting professor at George Mason University. Hayden is an adviser to Mitt Romney's presidential campaign.


If that doesn't tell me all I need to know about his objectivity, nothing will. I DO however appreciate CNN for making this clear.

Make no mistake, Hayden is looking for a position with a Romney administration. AND make no mistake -- Romney is setting himself up to be another Bush wrt to foreign policy. We'll not be going to Iraq again -- this time it will IRan -- just to show em how it shoulda been done, and that is a VERY scary prediction.


Comment by Raine on 01/05/2012 20:07:53
IS it me or does John McCain sound like he is swallowing Bile with his endorsement of Mitt Romney?

Comment by livingonli on 01/05/2012 20:14:06
Quote by Raine:
IS it me or does John McCain sound like he is swallowing Bile with his endorsement of Mitt Romney?

That's his general mood, but in this case, that is the most likely reason. I guess it would have been that or clenched teeth.

Comment by Mondobubba on 01/05/2012 20:14:31
Quote by Raine:
Quote by TriSec:
Note to Keith: for the level of control and influence you're asking for...you're going to need to start your own network. Sorry, I don't think there's any other way.
*ding*

I am thinking that as well. It's normal for political programs to be pre-empted for events such as primaries and caucus', elections etc.



KO was, I think supposed to be the Chief News Officer for Current or some other high falunitin' sound title along with Countdown host. I would think this mean he has some input on these staffing issues. it also means your and executive for the company, Skippy so you do have to answer to your boss, Al Gore. So just simmer down, Jasper.

Comment by Raine on 01/05/2012 20:18:11
OK, Randi just talked about this. and it sounded unbelievable -- but it isn't.

As Iowa caucus watchers entered the wee hours, waiting to see whether Rick Santorum or Mitt Romney would win, the woman with the answers was fast asleep. Edith Pfeffer, the Republican chairwoman in Clinton County, held the crucial votes from the 2nd Ward's second precinct that would ultimately determine the winner.

But at 1:30 a.m., Pfeffer had retired to sleep in a room without a phone. She couldn’t hear the calls from the Romney campaign, CNN, or her friend Carolyn Tallett, who soon came to ring her doorbell and pound on her windows.


Wow, see how excited the GOP is for their candidates? Holy crap.

Comment by Scoopster on 01/05/2012 20:40:54
Oh cmon give 'em a break! Them old folks is sleepy!

Comment by TriSec on 01/05/2012 20:51:18
Off to the store....g'nite out there!

http://cdni.llbean.com/is/image/wim/229685_116_42?wid=190&hei=219


Comment by Raine on 01/05/2012 20:58:56
Quote by Scoopster:
Oh cmon give 'em a break! Them old folks is sleepy!
HA!


Comment by Raine on 01/05/2012 21:22:41
Me thinks Newt just said something more disgusting that his desire to roll back child labor laws.

Newt Gingrich says he plans to "go to the NAACP convention and tell the African-American community why they should demand paychecks instead of food stamps."


Let's just ignore that more whites in America are on food stamps, shall we?

Comment by Mondobubba on 01/05/2012 21:24:42
I wonder if God told Michele Bachmann to stop running for president. I mean He told her to run right? This begs the question if being omniscient, God knew in advance that she'd tank in Iowa, why did he bother to tell her to run in the first place. There a couple of answers I think; the good congresswoman is bat-shite crazy in a clinical way and is hearing voices. The second option is God is a wise-ass and likes messing with crazy people like Bachmann.

Comment by Mondobubba on 01/05/2012 21:32:34
Quote by Raine:
Me thinks Newt just said something more disgusting that his desire to roll back child labor laws.

Newt Gingrich says he plans to "go to the NAACP convention and tell the African-American community why they should demand paychecks instead of food stamps."


Let's just ignore that more whites in America are on food stamps, shall we?


Mmmmm yeah, that wouldn't play well with the asshats he is speaking to. That would run counter to their mindset. It would be amusing to watch all those heads esplode at one time though.

Comment by Will in Chicago on 01/05/2012 21:33:43
Raine, thanks for an interesting blog.

I would hope that we see the president appoint some judges. One of the problems with this Congress is that a majority vote no longer accomplishes much in the Senate. Instead, a supermajority seems required for any action. This is indeed an abuse of the filibuster rule.

Some people will oppose the president on any grounds. So, like FDR, perhaps Obama should be glad of their hatred for him and just move ahead with his agenda. (I will credit Senator Mitch McConnell for one virtue -- honesty when he admitted that his number one job was to ensure that Obama is a one term president.)

Okay, back to prepping for my Massachusetts teachers test.

Comment by BobR on 01/05/2012 22:15:25
Quote by Mondobubba:
I wonder if God told Michele Bachmann to stop running for president. I mean He told her to run right? This begs the question if being omniscient, God knew in advance that she'd tank in Iowa, why did he bother to tell her to run in the first place. There a couple of answers I think; the good congresswoman is bat-shite crazy in a clinical way and is hearing voices. The second option is God is a wise-ass and likes messing with crazy people like Bachmann.

I've been asking that first question ever since she decided to bow out.

Comment by Mondobubba on 01/05/2012 22:16:02
Comment by Raine on 01/05/2012 23:53:22
Quote by Mondobubba:
MMmmmmmmm that's good snark!

Snark, not shark.
I read this part
Politico declares her a “lock” for reelection, but that depends on whether or not she runs. She effectively promised not to, but that promise may have been predicated on her remaining a legitimate presidential candidate. (Minnesota law prohibits running for two federal offices at once.)

and wondered... what does this mean being that she has suspended her campaign as opposed to ending it?