Larry Summers helped sink Elizabeth Warren’s nomination to head new consumer bureau
Former White House economic adviser Larry Summers helped sink Senator Elizabeth Warren’s (D-MA) nomination to head the Consumer Financial Protection Bureau in 2010.
Obama appointed Warren in 2010 as a special adviser to oversee creation of the new bureau. She was a favorite among progressives and Obama had considered nominating her to head the CFPB.
Warren’s potential nomination faced strong opposition from Senate Republicans, as well as from Obama’s economic advisers. Both Summers and Treasury Secretary Timothy Geithner opposed her nomination. Obama ended up nominating former Ohio Attorney General Richard Cordray in 2011, but praised Warren for her work.
“I also want to thank Elizabeth Warren not only for her extraordinary work standing up the new agency over the past year, but also for her many years of impassioned leadership, and her fierce defense of a simple idea: ordinary people deserve to be treated fairly and honestly in their financial dealings,” Obama said after nominating Cordray. “This agency was Elizabeth’s idea, and through sheer force of will, intelligence, and a bottomless well of energy, she has made, and will continue to make, a profound and positive difference for our country.”
Obama is currently considering nominating Summers or Federal Reserve vice-chair Janet Yellen to replace Federal Reserve chairman Ben Bernanke. Warren has publicly endorsed Yellen.