Breaking news from the American Banker:
Frank Keating, the head of the American Bankers Association, said Tuesday he would back Elizabeth Warren as director of the Consumer Financial Protection Bureau, if nominated by the president.
"If she is the nominee, we would be fully support of her," said Keating, who, like Warren, hails from Oklahoma.
Keating, a former governor of Oklahoma, joined the ABA as president and chief executive on Jan. 1. Speaking to reporters after his inaugural speech before the Women in Housing and Finance, Keating made clear he would not object to any nomination made by the president to head the new agency, including Warren's, even if at times they might disagree over certain issues.
Timing of a nomination by the president, which is highly anticipated, could not be any better given the political capital he gained after the death of Osama bin Laden.
"Because of that lift to the president it may well be that he does decide to nominate her," said Keating. "She's very bright, very capable."
"If she is going to be nominated, it's as a result, truthfully in my opinion, of the events of the last several days," he said. "The president is really riding high right now. He may decide it's worth it, let's get her.
Keating acknowledged public criticism that has been said on Warren's focus on enforcement issues, which he says he's spoken to her about.
"Consumer protection is a two-way street," said Keating. "You have bad consumers trying to screw banks, and on occasion, financial institutions trying to screw consumers. So you've got both; it's a two way street."
He's also made the case to Warren on the need to preserve community banks, which average just 35 employees. He said those employees are tasked with implementing thousands of pages of regulations signaling that at some point bankers may be too burdened with compliance obligations to do their actual jobs.
"We need regulation, but it can't be oppressive," said Keating. "If that community bank closes because the regulatory burden is so oppressive, it's simply isn't worth it. When those banks close those towns are going to blow away."
Warren, according to Keating, has acknowledged the concern saying that would be something she would keep in mind as regulators work through implementation of Dodd-Frank.
Update: David Dayen doesn't buy the Bin Laden explanation.
Comments