Obama's decision to tap Elizabeth Warren as advisor for a new financial watchdog group has raised the ire of consumer and business advocates, who argue that her appointment undercut the goals of clarity and transparency.
Harvard Law professor Elizabeth Warren announced early Friday that she had accepted an advisory role with the newly created U.S. consumer protection agency. The move comes despite fierce opposition from the financial industry.
The White House is exploring ways that Warren could run the bureau without having to go through a confirmation battle, leading to reports that Obama will use a recess appointment. But that would last only until the end of 2011.
America's bailout program, which was intended to help U.S. banks, greatly helped foreign banks as well, a Congressional watchdog group has concluded. The American government flooded the financial markets with money, aiming to help as many banks as possible, while most foreign nations targeted funds to save individual institutions, often those with no major U.S. operations.
After more than a year of wrangling by Congress to craft legislation, President Obama signed the Wall Street and Consumer Protection Act into law Wednesday. The new regulations are the most sweeping reforms to hit the financial industry in more than half a century.
Bank stocks have been on a tear over the last few months, rising twice as fast as the market. But changes in the banking world, from souring commercial real estate loans to higher interest rates, suggest that the sector could come under pressure in the second half of the year.
