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How not to staff a bureau designed to protect consumers

October 27, 2010

Adviser to Consumer Agency Had a Role in Lending – NYTimes.com.

The new Consumer Financial Protection Bureau was announced by Obama as, “a watchdog for the American consumer, charged with enforcing the toughest financial protections in history”, and then he evaded the advise and consent of the congress by appointing Elizabeth Warren to a position that is technically the director of the Bureau but not technically enough for our representatives to have to decide if she is right for the job.

And now Mrs. Warren, has added a new member to her staff, Rajeev Date.  Who the hell is that you may ask?  Well I will tell you.

During the “debate” over the Dodd-Frank bill that created the Bureau, Mr. Date was a consultant who worked for a nonpartisan policy institute [ever notice progressive think-tanks are always “nonpartisan”?] as well as a banking executive.  Oh, and he was a director for Prosper Marketplace Inc.

What has Prosper marketplace done, well in 2008, they settled a lawsuit with the SEC for, “selling unregistered securities. State regulators said Prosper also failed to properly disclose risks.” [Brent Hunsberger, the Oregonian]

Additionally, “39% of loans on Prosper Marketplace that have reached the end of their three year term have gone into default. Prosper was unsurprisingly unhappy about the article and demanded that the article be retracted.”  The article has been retracted. [American Banking & Market News]

Thank you Barney “Fannie Mae” Frank and Chris “Countrywide” Dodd for creating a new agency for protecting us consumers.  With folks like Rajeev Date helping to build it, I am sure we are in safe hands.

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2 Comments leave one →
  1. LD Jackson permalink
    October 27, 2010 9:26 pm

    Wow, it sure is nice to be in good hands. Oh wait, that’s the Allstate jingle. Must have slipped my mind for a moment.

    Is it me or does there seem to be a lot of less than ethical types in places of authority in this administration. I would like to be proud of Elizabeth Warren, since she is an Oklahoma native, but I can not be. The progressives would like us to believe she is a wonderful consumer advocate, but I think there is much more to her than meets the eye. The appointment of Rajeev Date as her adviser cements that thought.

    • October 27, 2010 11:05 pm

      I refer you to my post “ethics are for losers” on why progressives don’t see a problem with having these people in charge. This Consumer Financial Protection bureau debacle will be just another regulatory body that will allow the government to pick the winners in our economy.

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