Elizabeth Warren, currently serving as special advisor to the Treasury secretary for the Consumer Financial Protection Bureau, gave testimony on Wednesday before the House Subcommittee on Financial Institutions and Consumer Credit Committee on Financial Services. Warren provided information about the new agency Democrats Barney Frank (Mass.) and Chris Dodd (Conn.) helped create with their so-called financial regulatory reform bill.
The idea of Dodd and Frank creating regulatory reform can be compared to the fox guarding the hen house, but that’s old news. The duo’s future mischief may be limited. Frank is getting on up in years as we say in the South. Dodd is no longer in Congress—he’s lobbying for Hollywood so he’ll be focused on sweetheart deals for Tinseltown.
Warren told the congressional committee, “Irresponsible lending that encouraged people to buy homes with no realistic hope of ever paying off their loans has now led millions of families into foreclosure and bankruptcy. If there had been just a few basic rules and a cop on the beat to enforce them, we could have avoided or minimized the greatest economic catastrophe since the Great Depression. In the future, the new consumer bureau will be that cop.”