Wall Street wary of Elizabeth Warren
Elizabeth Warren, the brains behind the Consumer Financial Protection Board, on Tuesday won the so-called Kennedy Seat in Massachusetts, wresting the Senator position away from incumbent Republican Scott Brown.
Warren is an old foe on Wall Street, one whom the industry vowed to oppose at all costs. While she conceived the CFPB, and while she was more than willing to become its first head, the Obama Administration never put her forward for the job, perhaps sensing extreme industry opposition.
Should Wall Street be concerned anew now that she is a Senator?
Warren will have the opportunity to weigh in on regulatory issues, and her victory is "one of Wall Street's worst nightmares come true," according to a Forbes commentary.
Indeed, Warren revisited the get-tough-on bank rhetoric as she campaigned. Wall Street will no doubt be on the alert, but in the end, it would not be surprising if bank regulation declined as a major public policy issue.
To be frank, the big battles have already been fought, and Dodd-Frank has been passed. Other issues will take priority. Warren will no doubt be tough on banks, but I can't see major new regulation emerging from the new Congress or the administration. It's all about Dodd-Frank implementation now.
Warren's voice will no doubt be raised on occasion, but there is little reason to think that her victory represents a regulatory sea change for the industry.
- here's the commentary
Warren will not lead CFBP