Warren wrote:
The contrast with the big banks could not be sharper. While the middle class has been caught in an economic vise, the financial industry that was supposed to serve them has prospered at their expense. Consumer banking -- selling debt to middle class families -- has been a gold mine. Boring banking has given way to creative banking, and the industry has generated tens of billions of dollars annually in fees made possible by deceptive and dangerous terms buried in the fine print of opaque, incomprehensible, and largely unregulated contracts.
And when various forms of this creative banking triggered economic crisis, the banks went to Washington for a handout. All the while, top executives kept their jobs and retained their bonuses. Even though the tax dollars that supported the bailout came largely from middle class families -- from people already working hard to make ends meet -- the beneficiaries of those tax dollars are now lobbying Congress to preserve the rules that had let those huge banks feast off the middle class.
Pundits talk about "populist rage" as a way to trivialize the anger and fear coursing through the middle class. But they have it wrong. Families understand with crystalline clarity that the rules they have played by are not the same rules that govern Wall Street. They understand that no American family is "too big to fail." They recognize that business models have shifted and that big banks are pulling out all the stops to squeeze families and boost revenues. They understand that their economic security is under assault and that leaving consumer debt effectively unregulated does not work.
Families are ready for change. According to polls, large majorities of Americans have welcomed the Obama Administration's proposal for a new Consumer Financial Protection Agency (CFPA). The CFPA would be answerable to consumers -- not to banks and not to Wall Street. The agency would have the power to end tricks-and-traps pricing and to start leveling the playing field so that consumers have the tools they need to compare prices and manage their money. The response of the big banks has been to swing into action against the Agency, fighting with all their lobbying might to keep business-as-usual. They are pulling out all the stops to kill the agency before it is born. And if those practices crush millions more families, who cares -- so long as the profits stay high and the bonuses keep coming.
So it’s no wonder that President Obama summoned Warren to Washington the day after the Dems’ loss up in what used to be Kennedy country. Warren had already spelled out very clearly the outrage that swept Scott Brown to victory on Tuesday.
And not surprisingly, Ethan Porter, associate editor of Democracy: A Journal of Ideas, is promoting Warren as a Democratic candidate for higher office in 2012. In a Boston Globe op-ed, Porter writes:
Warren has spent her career laying the groundwork for what might be called progressive populism. From her perch in Cambridge, she’s excoriated the unfair credit and lending practices that, in part, gave rise to the current crisis. She was the architect of the Consumer Financial Protection Agency, which, if created, would regulate credit cards and mortgages in the same way home appliances are regulated now. (Full disclosure: Warren once wrote about the agency in the publication I help edit.) And well before the bubble broke in the summer of 2007, when America was still riding high on George W. Bush’s economy, Warren was speaking out against the incredible pressure the 21st century economy was putting on the middle class. She was derided as a Cassandra, but she was right.
