Queen Elizabeth

16 September 2010 By James Pethokoukis

Coming from a credit card issuer, Elizabeth Warren might not like that. But Main Street will welcome having her setting up the U.S. consumer financial protection agency. The president may not care that Wall Street feels differently. Still, the manner of his pick carries risks.

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President Barack Obama plans to name Wall Street critic Elizabeth Warren to a special advisory role helping to set up the new U.S. consumer financial watchdog, Democratic sources said on Sept. 15.

Warren, a 61yearold Harvard law professor, would report to Obama and the Treasury Department in a position that unlike a formal nomination to head the new agency would not require confirmation by the Senate.

Warren is unpopular on Wall Street for her calls to crack down on abusive lending practices by financial firms, but she is supported by liberal activists and consumer groups.

The landmark U.S. financial reform law, enacted in July, mandated the creation of the consumer bureau, which will have broad powers to write and enforce regulations covering mortgages, credit cards and other financial products.

Warren, whom Obama has referred to as a dear friend, came up with the idea for the consumer agency.

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