Sunday, September 8, 2013

Elizabeth Warren: New to the Senate, but a Capitol Hill Veteran



            In the United States Congress, MCs have a fine line to walk.  Not simply the line between acting as a representative for the people of a home state and acting as a legislator in one of the most powerful nations on Earth, but also the line between fighting uphill battles for bills that many do not want to see passed and accepting defeat for the purpose of building alliances and building political capital.  Indeed, many senators are content with playing it safe in order to ensure that they do not offend their constituents, or, even worse, their financial backers. Elizabeth Warren, on the other hand, has never been content to play it safe.  She will fight tirelessly for what she believes is right.  A staunch defender of the middle class, she has been called “a symbol” in the fight against unregulated business and profiteering CEOs and she has been called “the Devil incarnate” by those very same CEOs with whom she has gone toe to toe on more than one occasion.  She has truly earned both titles.  For in her time in politics, she has never backed down from a challenge; never shied away from an opportunity to fight against a Wall Street powerhouse which in 2008 brought the world to its knees.
            Warren was elected to the U.S. Senate in 2012 and began her tenure in January of 2013.  She is a Democrat from Massachusetts, and despite her incredibly short tenure in Congress, she is already well known on Capitol Hill. She is seen as a friend to many, and has made more than a few powerful enemies.  Born to a poor working class family in Oklahoma City in 1949, Warren quickly distinguished herself as cunning debater. At just sixteen years old, she won the title of Oklahoma’s Top High School Debater and was given a full scholarship to George Washington University in Washington DC.  At nineteen, she left GW to marry her first husband Jim Warren. The two moved to Texas where she finished her degree at the University of Houston.  She received her law degree from Rutgers School of Law in 1970 and spent three decades as a professor at a number of colleges and universities including the University of Texas, the University of Michigan, the University of Pennsylvania and ultimately became a tenured professor of law at Harvard.  Specializing in bankruptcy law, she is one of America’s foremost experts on the subject. 
It was not until 1995 that Warren began her career in politics as a member of the National Bankruptcy Review Commission (NBRC).  She was a self-identified Republican until she joined the Commission.  She, like many, believed that the people filing for bankruptcy were simply trying to cheat the system; trying to shirk their debts and avoid responsibility.  It was not until she saw first-hand as a member of the NBRC that those filing for bankruptcy were, all too often, hardworking, middle class families.  After this epiphany, Warren made an almost complete turnaround.  She went from blaming people filing for bankruptcy for attempting to game the system, to fighting against congressional legislation seeking to limit people’s ability to file for bankruptcy.  Eventually, this proved fruitless.  In 2005, ten years after she joined the commission, Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.  This act made it significantly more difficult for people to file for bankruptcy protection and was hailed at the time as the greatest victory for the banking lobby of all time.
Despite this defeat, Warren’s conviction never faltered.  After the collapse of the banking industry and the recession in 2008, she was appointed by Harry Reid to be one of the five chairs on the new Congressional Oversight Panel (COP) which was created to oversee the implementation of the Emergency Economic Stabilization Act.  Her duties were to evaluate the bailout of the banks and the effectiveness of the Troubled Asset Relief Program (TARP) funds.  It was acting as the chairperson for this committee that Warren really began to make herself known in Washington, both for good and for ill.  She grilled government officials, demanded accountability, and generally made it her mission to turn her committee into the scourge of unregulated banking. Her prowess as a debater shone brilliantly during her time on the COP.  One memorable instance was when grilling treasury secretary Timothy Geithner in 2009 about the use of TARP funds in a video that was labeled on YouTube as “Elizabeth Warren Makes Timothy Geithner Squirm.”  Warren refused to sit back while taxpayer money which was intended to prevent the collapse of our financial institution was used instead to line the pockets of CEOs.
The accountability of government and the regulation of business has been the main drive of Elizabeth Warren since she entered politics.  For her, there is no question that it is the middle class which made America great, and without a more robust strategy for consumer protection, the middle class would be allowed to drown while banks continue to make record profits.  This was her rationale when becoming an early, ardent defender of the Wall Street Reform and Consumer Protection Act commonly known as “Dodd-Frank.” This act was designed to ensure accountability for financial institutions, create transparency and eliminate the idea of “too big to fail.” It would also establish the Consumer Financial Protection Bureau (CFPB). Despite a veritable flood of lobbyists from the banking industry, Dodd-Frank was signed into law in 2010.  Like many of Warren’s fights, the fight for Dodd-Frank was uphill all the way. The fight over it was so fierce that even Chris Dodd, one of the bill’s sponsors was willing to make huge concessions which threatened the effectiveness and the very integrity of the bill, but not Elizabeth Warren.  In her own words, when speaking about the fight over the CFPB to Huffington Post, she said “My first choice is a strong consumer agency, my second choice is no agency at all and plenty of blood and teeth left on the floor.” Even after it passed, Dodd-Frank’s Republican opponents in the senate threatened to block any presidential appointment for the director of the CFPB.  Likely trying to avoid an uphill fight, himself, President Obama passed over Warren for the role of director, despite the fact the she was commonly agreed to be the ideal candidate for the job by those who supported the creation of the bureau in the first place. There has been much speculation that it was the fact that she had accrued so many enemies (chief among them Timothy Geithner) which convinced Obama to choose someone else.
After less than a year as a special advisor to the CFPB, Warren left and announced her intention to run for Senate.  She defeated Republican incumbent Scott Brown who had held the position since he won a special election in 2010 after the death of Ted Kennedy.  The campaign was an interesting one.  Brown was funded primarily by the financial industry, investment banks and the like, while an astonishing 97% of Warren’s campaign funds came from donations of under $100.  The middle class seemed to see that Warren was in their corner, while banks also realized that she was decidedly not in theirs.  Both candidates took what has become known as “the peoples pledge”, an agreement to not accept any campaign funding from Super PACs.  While neither did, Warren’s funding did come from the people almost exclusively.  True to her message that she works for the people.
While she has only been in the Senate for less than a year, Elizabeth Warren has not strayed from her path or wavered in her convictions. She has sponsored bills like the 21st Century Glass-Steagall Act which would force a separation between bank’s investment arms and their commercial banking arms.  This would ensure that banks’ risky gambling with investments would not become a threat to the livelihoods of hundreds of thousands of ordinary people who do business with them. She also sponsored the Bank on Student Loan Fairness Act. Which would allow students to get federal Stafford loans with a .75% interest rate (the same rate the Federal Reserve charges banks to borrow money).  While her focus is clearly at the federal level, fighting hard to ensure that our economic system is once again working like it should, Warren has not neglected her constituents in Massachusetts.  She attended a rally a week ago where she called light to the fact that there have been over 100 shootings in Boston alone since the bombings at the marathon in April.  She called these shooting an epidemic and called for stronger national gun laws. For Warren, however, a strong and unassailable defense of the middle class is recognizing the needs of her constituents.  This was clear from the outpouring of support that she received in the form of small donations to her campaign.
As a new senator, Elizabeth Warren is just learning the rules of the game. She is learning the intricacies of the Senate and its traditions and procedures.  In some cases, a senator can be broken by this process; they can fall into line.  An MC could decide that it is better to make friends and allies by avoiding big fights.  Alternatively, they can forgo this diplomatic process and stick to their guns.  If Elizabeth Warren as a senator is anything like she was before, it seems unlikely that she will shy away from the big fights, even if it does mean making a few more enemies on the hill.

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