Obama Aide Warren Tries to Allay Banker Concerns About New Consumer Agency
WASHINGTON - Harvard University law Professor Elizabeth Warren, appointed by President Barack Obama to jump-start the new consumer agency that will oversee auto financing, struck a conciliatory tone with bankers last night but ultimately failed to allay at least some concerns about her, Automotive News reported.
“In the weeks and months ahead, I’m going to listen more than I’m going to talk, and I’m going to keep my door open,” Warren told a private Washington dinner sponsored by the Financial Services Roundtable.
She endorsed a “principles-based approach” to regulation as a substitute for “creating a regulatory thicket of ‘thou shalt nots.’ ’’
This approach “would focus on how to give consumers the power to make the right choices for their families -- and at the same time to ease the regulatory burden for the lenders,” Warren said, according to a text provided by her office.
She gave an example involving credit cards but did not mention auto finance in her remarks.
Under the new financial regulation law, the Consumer Financial Protection Bureau is to oversee lenders that help finance consumer auto purchases. It will not police dealers’ role in that financing.
Warren, who conceived of the idea of a federal consumer agency, was named this month as an assistant to Obama rather than director of the bureau, which would have required Senate confirmation.
Bank lobbyists opposed both the creation of the agency and her appointment. Some continued to express concern today.
“Last night’s comments by Professor Warren did little to alleviate the anxiety or uncertainty that surrounds her appointment to a powerful yet undefined post as assistant secretary at Treasury,” said Chris Stinebert, CEO of the American Financial Services Association, which represents captive finance companies and large banks.
He added: “However, auto finance companies can take some solace in the fact that auto finance was not highlighted as a problem area.”
The National Automobile Dealers Association also has expressed concerns about Warren.
NADA Vice Chairman Stephen Wade said last week that her appointment “worries us.”
An NADA spokesman today declined to comment about her speech.
Last month, Deputy Treasury Secretary Neal Wolin said the consumer agency soon would begin trying to simplify auto loan forms for consumers.
He said in congressional testimony today that July 21 has been designated as the start date for the new agency.
At that time it will assume existing authority of seven other federal agencies -- including the Federal Trade Commission, which has been overseeing the role of lenders in auto financing, Wolin told the Senate Banking Committee.
Six of these agencies also will transfer staff to the new consumer bureau, he said.
More Industry

World EV Adoption Set to Grow
A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.
Read More →
Black Book: Weekly Market Update
Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.
Read More →
Pricing Transparency Drives Purchase Consideration
An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.
Read More →
Black Book: Weekly Market Update
Used-vehicle market depreciation was the prevailing story in the wholesale market last week.
Read More →
Smaller Is Looking Better
A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.
Read More →
U.S. EV Market Slowly Stabilizes
U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.
Read More →
Global EV Market Entering New Phase
Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.
Read More →
Black Book Weekly Market Update
The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.
Read More →
Auto Affordability in Context
Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.
Read More →
Black Book: Weekly Market Update
Automotive auction inventory increased last week, giving choosy bidders even more leeway.
Read More →