By Simon Johnson
Representative Spencer Bachus, Republican chair of the House Financial Services Committee, famously remarked in December,
“in Washington, the view is that the banks are to be regulated, and my view is that Washington and the regulators are there to serve the banks.”
With regard to the Consumer Financial Protection Bureau (CFPB), this apparently now implies that Mr. Bachus will use any means possible to change the topic away from substance – how banks treat their customers – to imagined procedural issues.
Specifically, Mr. Bachus is wrongly accusing Elizabeth Warren of misleading Congress with regard to the role of the CFPB in the negotiations over how to settle allegations that mortgage foreclosure practices have been abusive (see also this news coverage). Continue reading