Sen. Elizabeth Warren is criticizing the new House Republican budget, saying it’s all about protecting banks and does not look out for middle-class Americans.
The Democrat senator from Massachusetts released a statement to the National Journal after the budget was revealed, saying, “The consumer agency has put in place strong rules to protect consumers from tricks and traps in financial products. The big banks don’t like that — and that’s the No. 1 reason the CFPB (Consumer Financial Protection Bureau) should remain free of political influence.”
The CFPB was formed in July 2011 to provide Americans with better protection from loan companies, specifically for credit cards, mortgages and student loans. It was created after the passage of the Dodd-Frank financial reform law, passed in July 2010, which was to eliminate bailouts for “too big to fail” corporations in the event of another recession.
The GOP’s budget puts the CFPB under “congressional appropriation,” meaning Republicans will control how much funding the CFPB receives, which Warren believes will not be enough to keep the bureau running.
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The White House also released a statement, siding with Warren’s plea to leave the CFPB and Dodd-Frank as is.
“In addition, it (the GOP bill) risks returning us to the days of ‘too big to fail,’ protecting Wall Street firms from important regulatory safeguards and putting ordinary citizens and the economy at risk.”
Since being sworn into the U.S. Senate in January 2013, Warren has been known for her progressive-liberal politics, specifically concerning student loans. In September 2014, she proposed the Bank On Students Emergency Loan Refinancing Act, which would have let students refinance their college loans at lower interest rates, while raising taxes on those of earned incomes between $1 million and $2 million. It was voted down by House Republicans, citing the high tax hikes.
Warren’s name has also been brought up recently as a possible contender for the Democratic nomination for president in 2016. While Hillary Clinton remains the frontrunner, many liberal Democrats prefer Warren, as her strict views on bank regulation are more to their liking than Clinton's traditional Democratic views. But Warren has repeatedly said she will not be running for the nomination and numerous polls have placed her far behind Clinton.
Photo Credit: Consumer Financial Protection Bureau