Time almost to Elizabeth Warren

Mary f. Calvert and the New York Times/Redux

By Carter Dougherty and Robert Schmidt

Elizabeth Warren is the architect behind the Bureau of financial Protection consumer, the new agency created many financial products, including mortgages and a centerpiece of the Administration of the police reform efforts. The opposition of Wall Street, Republicans and some moderate Democrats prevented the Professor of Harvard law school and critic of long standing in the banking sector on his appointment as the head of the Office, after its creation last year. Instead, the President Barack Obama appointed as Special Adviser Warren in September and he sought to prepare the Office for its launch on July 21. The move was seen by his supporters as a chance for Warren to appease his critics and pave the way for an eventual nomination.

Six months later, there is little evidence that Warren was successful. Wall Street banks and Republican opposition has intensified after his involvement in proposing a 20 billion fine on the mortgage industry. While it has gained the support of many small community banks, Warren did convert any new allies in the Senate, leaving him short of the 60 votes needed for confirmation. Before his retirement in January, Senator Christopher j. Dodd (D - CN), co-author of the Bill for reform of the Dodd-Frank regulation that created the Consumer Agency, urged Obama to someone else in employment - a motion of censure that contributes to explain rumours that Warren is considering alternative routesincluding a race for the Senate. Representatives of Warren refused to comment on.

In recent weeks the Administration has tended to two other Democrats, former Governor of Michigan Jennifer Granholm and former Senator Ted Kaufman of Delaware, to take the job, according to those familiar with the deliberations of the Administration. Both have declined. The Senate Banking Committee Chairman Tim Johnson (D - s RTI) calls Warren "one of a number of excellent potential candidates" but the Administration needs to move forward.

Speed is important because the Republicans see an opportunity to weaken the Office. Over the few months the GOP has filed bills which would replace the Director position with a five-member commission and reduce the budget and the authority of the Office. Warren "has raised concerns more that it has quelled," said representative Patrick McHenry (R - n BW), which promotes the control of the Agency. Michael Lux, chief executive officer of progressive strategies, a Liberal, said Council criticism of Republicans is a tactic "to frighten the banks campaign contributions" and make it politically costly to Obama to give Warren a recess appointment, without the approval of the Congress, which would result in the Office until 2012.

In its role of intermediary, Warren authority is limited, and it can take a binding regulation. But it has already hired dozens of members of the staff of the Office to consumers, has obtained a permanent home for the Agency near the White House, began work on a warning of fraud hot line and organized conferences on credit cards and mortgages. She spent much time meeting with small lenders across the country, working to convince them that the rules of the ICDP will be equality of opportunity and help them compete with large banks. Robert L.Palmer, Director General of the Association of bankers community of Ohio, said that its members are enthusiastic. If Warren "" leaves, and direction changes, we are not going to be very responsive, "said Palmer."

Large banks have received less attention. Warren February calendar reveals that a - a telephone call - discussion with a direction of Wall Street (Jamie Dimon of JPMorgan Chase (JPM) and a few meetings with groups of trade representing big banks.) "She meets with people, which is pleasant," explains Sam Geduldig, a Republican banking lobbyist. But "actions speak louder than words".

One recent action, in particular, financial pill. Documents published in recent weeks show that Warren has advised Federal employees and States investigating the alleged unjustified to include in a seizure any agreement with the fine mortgage of $ 20 billion industry and a requirement to reduce the balances of loans for owners who have difficulties of several million. The Financial Services Committee of House Republican said that she failed to disclose adequately its role in the negotiations while giving testimony on 16 March. Secretary of the Treasury Timothy Geithner named President of the Federal Reserve Ben Bernanke of Europe earlier this month to ensure that it is not supporting offer of settlement, according to two people informed on the issue. "The mortgage stuff confirmed really the kind of concerns which have been on it," says Wayne Abernathy, an Executive Vice President at the American Bankers Assn., whose members are the largest banks.

A recess appointment may be last chance to Warren running the consumer protection agency. She stand instead for the Senate in 2012 against Scott Brown, the Republican freshman of Massachusetts encourage Liberal groups which include the Daily Kos blog. Some Republican legislators may prefer him as a colleague rather than as a regulatory body. Warren "could be a nice Professor," said McHenry, but it did not itself show capable of running a government agency. ?

The bottom line: It is less likely that Warren will never perform the ICDP. Liberals urge to consider a run for the Senate.

Dougherty is a journalist for Bloomberg News. Schmidt is a reporter for Bloomberg News.

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