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Wednesday, March 16, 2011

Financial Czar Warren Gets Grilled; Offers Nonsense

Today at a hearing, Obama's bank-hating "consumer protection" czar Elizabeth Warren was grilled by the GOP over her massive budget and total unaccountability for her actions.

Warren argued that the bureau does have checks and balances because its decisions, in certain circumstances, can be rejected by the Financial Stability Oversight Council, a newly formed umbrella group composed of bank and securities regulators.

The Dodd-Frank Act gives the council authority to void consumer agency rules by a 2/3 vote if its rule puts at risk “safety and soundness of the banking system or the stability of the financial system.” Most regulatory observers argue that it is very unlikely the council would ever use this authority because of the high threshold for action, however.

Warren added that the agency has other checks and balances, including requirements to submit annual reports to Congress and have its director testify twice annually. The Government Accountability Office also conducts an annual audit of the consumer bureau’s expenditures and must submit a report to Congress, she added.

So there. It must submit an annual report. Yippeeee.

“Today, few of us seriously believe that we have the marketplace that American families deserve — or one that always works effectively and efficiently for financial institutions large and small,” Warren said.

Perhaps she means free mortgages for all? Make no mistake. She would absolutely have no problem harming the profitability of every bank in the country so she can dictate the rate on every last loan in what she views as "fairness."