Fierce Democrat Elizabeth Warren, a consumer rights advocate known for her fierce battles over financial regulation, will take the gavel in January to become chairwoman of the powerful Senate Banking Committee.
The Massachusetts senator intends to use her expanded platform to advance legislation to tackle populist affordability issues, with a focus on housing, according to a source familiar with her plans.
The person familiar with her plans said Warren would use the committee’s investigative powers to hold hearings and launch investigations into executive branch ethics and corporate practices, with the goal of holding President Trump, the administration, Wall Street and big tech accountable for economic decisions she believes have raised costs for consumers.
Warren should also take steps to protect the Federal Reserve from White House excesses. Any future candidate for the Fed will have to go through its committee. Earlier this year, she rallied Democrats to oppose the confirmation of Fed Chairman Kevin Warsh before the Banking Committee, delaying his eventual confirmation.
Wall Street will likely be another Warren target. Before Republicans regained control of Congress, Democrats reportedly required the chief executives of major banks to testify once a year before the House of Representatives’ Senate Banking and Financial Services Committees. The banking sector can expect a return to this practice.
Stephen Biggar, who covers the financial sector for Argus Research, says the hearings will provide more transparency, but will not be accompanied by meaningful regulation. Biggar expects increased oversight, potentially more consumer protections and measures to limit banks’ market share, such as blocking mergers.
He added that some fear that deregulation efforts and reduced capital requirements for banks championed by Republicans are now in jeopardy.
James Angel, an associate professor at Georgetown University’s McDonough School of Business, said he believes the hearings will accomplish two things: produce information and sound bites that will grab people’s attention and galvanize public opinion. Second, Angel says they will serve as a deterrent to those in power.
“If people are held under oath and there is a risk of perjury, that will deter people from doing more Trumpier things,” Angel said in an interview.
Angel also noted that any Trump appointee who must be confirmed by Warren’s committee will have to withstand bipartisan scrutiny and therefore be more likely to be moderate.
Forecasting Markets, Housing, AI and Credit Card Rates
Gn bussni
