President Obama announced the appointment of Elizabeth Warren as Assistant to the President and Special Advisor to the Secretary of the Treasury on the Consumer Financial Protection Bureau on Friday.
The President signed the Wall Street Reform and Consumer Protection Act, which creates an independent Consumer Financial Protection Bureau. Warren will play the lead role in setting up the Bureau and ensuring it is as effective as possible.
“The Consumer Financial Protection Bureau will crack down on the abusive practices of unscrupulous mortgage lenders, reinforce the new credit card law we passed banning unfair rate hikes, and ensure that folks aren’t unwittingly caught by overdraft fees when they sign up for a checking account,” said President Obama.
“The Consumer Financial Protection Bureau will be a watchdog for the American consumer, charged with enforcing the toughest financial protections in history. I am very grateful that Elizabeth has agreed to serve in this important role of getting the Consumer Financial Bureau up and running and making it as effective as possible.”
Secretary Geithner said, “Professor Warren has been a pioneer on the issues before the Consumer Financial Protection Bureau, and she will now help lead the effort to stand up the agency. We are grateful for her willingness to serve and know she will be a tremendous asset to us all as we take on the task at hand.”
“I am very pleased that the President agreed with those of us who pushed hard for Elizabeth Warren to be appointed. I look forward to working with her in her new position and to making sure that American consumers get the full benefit of the law we recently passed.”
House Financial Services Committee Chairman Barney Frank, one of the architects of the bill that created the Bureau said, “I am very pleased that the President agreed with those of us who pushed hard for Elizabeth Warren to be appointed. I look forward to working with her in her new position and to making sure that American consumers get the full benefit of the law we recently passed.”
The bureau is required to conduct a study on reverse mortgages to determine any deceptive practices and figure out whether suitability standards are necessary. It will also determine whether additional safeguards are needed to protect consumers from being sold reverse mortgages to fund inappropriate annuities, investments, and other financial products.