Democratic U.S. Senate hopeful Elizabeth Warren is calling on Republicans in Congress to back off attempts to limit the power of the Consumer Financial Protection Bureau.
Democratic U.S. Senate hopeful Elizabeth Warren is calling on Republicans in Congress to back off attempts to limit the power of the Consumer Financial Protection Bureau.
Warren, who is in a heated campaign against U.S. Sen. Scott Brown, R-Mass., helped create the bureau when she served as a special advisor to the secretary of the treasury for the Troubled Asset Relief Program.
The consumer agency, tasked with protecting citizens from predatory lending and other abusive business practices, has been under fire by GOP legislators since its inception. Currently, the bureau finds itself embroiled in a debate over its funding.
The CFPB is funded directly through the Federal Reserve, and slated to receive $547 million this year.
And although Democrats, including Warren, argue that the funding must remain independent of Congressional control to prevent political coercion, Republicans see things differently.
The GOP argument centers on the idea that funding outside of the appropriations process leaves room for waste and misuse of funds.
Warren said Republicans in the House are working to undermine the agency.
"The House Republicans are engaged in a backdoor attempt to weaken consumer protection and water down oversight," Warren said in a statement. "If Congress really cares about middle class families—and the health of our entire economy—it must ensure there is real accountability for Wall Street."
Republicans serving on the House Financial Services Committee have requested the CFPB provide them with a detailed budget explanation, a request which Director Richard Cordray is expected to grant.
Warren also renewed her call for prosecutions based on the financial crisis of 2008, an plan President Barack Obama announced during his State of the Union speech in January.
"More than three years since the greatest financial crisis in generations, working families are still suffering from unemployment, underwater mortgages, and other economic pressures while there has still been no real accountability for the people who broke this economy," Warren said. "The people whose illegal actions are responsible for this crisis need to be prosecuted and thrown in jail. We need a cop on the beat to make sure no one steals your purse on Main Street and no one steals your pension on Wall Street."
A Justice Department task force created in the wake of the financial crisis is said to be using the little-known Financial Institutions Reform, Recovery, and Enforcement Act of 1989 to prosecute alleged wrongdoing.
According to a Reuters report from April, the federal statute was passed in the wake of the savings-and-loan scandals in the 1980s and is favorable to prosecutors because it requires a lower burden of proof than criminal charges and has a longer statute of limitations than other financial laws.
Warren's renewed call for action comes on the heels of a week where she found herself embroiled in a controversy over her Native American ancestry and whether it played any part in her tenure as a Harvard Law School professor.
Brown, who has pushed reporters to question Warren on the topic, also had some potentially unflattering media attention this week.
On Wednesday, Brown continued to defend using the president's federal health care law he was elected in 2010 to repeal to cover his daughter Ayla, who is 23. The federal law, branded "Obama Care" by critics, requires that family insurance plans cover children until they are 26.
And the same day, a Boston Globe report revealed that Brown has used a joint-fund-raising committee called the Scott Brown Victory Committee to levy significant campaign cash from the financial sector.