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Judicial Watch • Lownds CFPB 1 of 3

Lownds CFPB 1 of 3

Lownds CFPB 1 of 3

Page 1: Lownds CFPB 1 of 3

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Number of Pages:1174

Date Created:January 27, 2012

Date Uploaded to the Library:February 20, 2014

Tags:banks, Republicans, Consumer, elizabeth, protection, Cheney, Amnesty, bureau, DOMA, house, Department of the Treasury, GSA, warren, cfpb, Bill Clinton, HHS, Congress, Frank, DHS, treasury, Pentagon, ATF, Obama, FBI, White House, DOJ, federal, credit, American, Supreme Court, EPA, IRS, ICE, CIA, financial


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RE: FOIA Request# CFPB-2012-012 
Lissette Garcia, .D. Senior Investigator 
Judicial Watch 
425 Third Street SW, Suite 800 
Washington, 20024 Dear Ms. Garcia: 

This letter interim response your Freedom oflnfonnation Act (FOIA) request dated October 21, 2011. Your request sought all communications and records communications from, to, about Kevin Kenneth Lownds; all timesheets and any other log indicating hours worked and assignments performed Kevin Kenneth Lownds; and all recruitment, training, pay negotiation, salary authorization, competitive selection, and job description information regarding Kevin Kenneth Lownds. search the CFPB's electronic mail (e-mail) system and Office Human Capital provided interim total 5,690 responsive pages your request. have determined that 3,974 pages are released part and 1,716 pages are withheld their entirety pursuant Title U.S.C.  552 (b)(2), (b)(5) and (b)(6). 
FOIA Exemption protects information related solely the internal personnel rules and practices agency, such records related the "selection, placement and training employees and ... the formulation policies, procedures, and relations with [or involving] employees their representatives." See Milner Dep't the Navy, Ct. 1271 (2011). 

FOIA Exemption protects from disclosure those inter-or intra-agency documents that are normally privileged the civil discovery context. The three most frequently invoked privileges are the deliberative process privilege, the attorney work-product privilege, and the attorney-client privilege. After carefully reviewing the responsive documents, detennined that portions the responsive documents qualify for protection under the Deliberative Process Privilege and the Attorney-Client Privilege. The deliberative process privilege protects the integrity the deliberative decision-making processes within the agency exempting from mandatory disclosure opinions, conclusions, and recommendations included within inter-agency intraagency memoranda letters. The release this internal information would discourage the expression candid opinions and inhibit the free and frank exchange information among agency personnel. Additionally, the attorney-client privilege protects confidential 
consumerfinance.gov 

communications between attorney and his client relating legal matter for which the client 
has sought professional advice. applies facts divulged client his attorney, and encompasses any opinions given attorney his client based upon, and thus reflecting, those facts, well communications between attorneys that reflect client-supplied information. The attorney-client privilege not limited the context litigation. 
FOIA Exemption exempts from disclosure personnel medical files and similar files the release which would cause clearly unwarranted invasion personal privacy. This requires balancing the public's right disclosure against the individual's right privacy. The information that was withheld encompassed personal email addresses, home addresses, personal well mobile telephone numbers, and other infonnation. The privacy interests the individuals the records you have requested outweigh any minimal public interest disclosure the infonnation. Any private interest you may have that information does not factor into the aforementioned balancing test. 
Your appeal rights will provided our final response your FOIA request. 
For inquiries concerning your request, please contact Ms. Laura Magere phone (202) 435
7907 and reference the FOIA request number above. you are unable reach Ms. Magere, 
please feel free contact CFPB's FOIA Service Center email CFPB _FOIA@cfpb.gov telephone 1-855-444-FOIA (3642). 

Marti sky FOIA Manager Office Records, Privacy FOIA 

consumerfinance.gov 

From: Royster, Felicia (CFPB) To: Shackleford, Tia Cc: Tingwald, James (CFPB)Disabled; Glaser, Elizabeth (CFPB) Subject: RE: STEP hire -Kevin Lownds Date: Tuesday, December 07, 2010 1:29:00 Attachments: image001.jpg Tia, please have Kevin report Marilyn Dickman the supervisor record. NTE 1/2/2012 acceptable are the number hours. Let know you have any additional questions. 
Thanks 
Felicia Royster 
Human Capital Implementation Team Consumer Financial Protection Bureau 202-435-7193 (1801 St) 202-294-1177 (BB) 
This message and any attachments may contain confidential privileged information and are only for the use the intended recipient this message. you are not the intended recipient, please notify the sender return email, and delete destroy this and all copies this message and all attachments. Any unauthorized disclosure, use, distribution, reproduction taking action reliance upon this information persons entities other than the intended recipient prohibited and may unlawful 
From: tia.shackleford@bpd.treas.gov [mailto:tia.shackleford@bpd.treas.gov] Sent: Tuesday, December 07, 2010 1:25 To: Royster, Felicia (CFPB) Subject: STEP hire Kevin Lownds 
Good afternoon Felicia, 
Dalton and have been working with the above STEP. have received all the required documentation from him. just need verify some information prior extending his official offer. First, James Tingwald will his direct supervisor, correct? Additionally, how long should set his NTE date for? Typically this set for 364 days for STEPs, would January 2012 acceptable? have attached below the information regarding his response his availability. Will this work for the program office setting his number hours per pay period? Tia, 
Thank you very much for this information. With regards availability, will able work hours week. There are weeks during which will only able work hours (the week beginning January 24, and the week beginning February 21), was going see could make that time during the weeks beginning January and January working hours during those weeks. Other than that, schedule will standard as: 
Mondays 2:00 6:00 Wednesdays 2:00 6:00 Fridays 9:00 5:00 hope this makes sense, let know you have any questions need any additional information from me. Thanks again! 
-Kevin 
From:	 Royster, Felicia (CFPB) 
To:	 Royster, Felicia (CFPB); RecruitApprovals 
Cc:	 Harpe, Pam (CFPB); Cloud, Brian; Ferrell, Dalton Dickman, Marilyn (CFPB); Tingwald, James (CFPB)Disabled 
Subject:	 RE: Notification Hire STEP (External) CFPB: Kevin Lownds 
Date:	 Thursday, November 04, 2010 11:18:00 
Attachments:	 Resume -Kevin Lownds.pdf Transcripts -Kevin Lownds.pdf 
Office: Consumer Financial Protection Bureau (CFPB) 
Selectee: Kevin Lownds Title, Series, Grade: Review Analyst, GS-0301-07 Recruit 135437 
Request approval hire Kevin Lownds under the Student Temporary Employment Program (STEP) Review Analyst. 
Brief Position Description: Review Analyst, GS-0301-07 
  Plans, schedules, and coordinates the operational management and efficient utilization  
office resources, analyzes problem areas and recommends changes.  
  Drafts memoranda, policy and procedural documents and responses information  
requests related the functions the organization.  
  Maintains historical and background informational files for assigned areas  
responsibilities.  
  Reviews incoming documents and correspondence, gathers additional background  
information and determines the distribution action needed.  

Resume: (attached) 

Timeline Extend Offer: ASAP 

Felicia Royster 
Human Capital Implementation Team Consumer Financial Protection Bureau 202-435-7193 (1801 St) 

PROFESSIONAL EXPERIENCE 
U.S. Department the Treasury, Office General Law, Ethics and Regulation: legal Extern (Starting 
September 2010, Washington, DC) 
 
Assist providing legal advice issues involving government contracts, regulations, and the departmental ethics program. 
Families Against Mandatory Minimums: Law Clerk (June-August 2010, Washington, DC) 
 
Conducted legislative research and analysis mandatory sentencing policies various states. 
 
Developed policy recommendations, legislative profiles, and fact sheets for particular issues. 
Chase Collegiate School: Research Associate and Staff Writer (May-August 2009, Waterbury, CT) 
 	
Prepared and analyzed research pertaining recruitment and retention trends. 

 	
Wrote and submilted press releases for local newspapers. 

Professors Jeffrey Berry, Political Science, and Sarah Sobieraj, Sociology: Research Assistant (September 
2008-May 2009, Medford, MA) 
 	Coded television and radio programs and conducted other research examine the extent of"outragc" media. 
Tufts Academic Resource Center: Head Writing Fellow (September 2006-May 2009, Medford, MA) 
 	Met with students one-on-one discuss papers for assigned class. 
Committee Elect Carl Sciortino: Campaign Manager (May-September 2008, Somerville, MA) 
 	
Coordinated all facets the successful write-in/sticker campaign forState Represc::ntative, including the field and fundraising operations, the mail program, and the communications plan. 

 	
Supervised staff including six full-time interns, volunteer coordinator, fundraising clircctor, media consultant, strategist/pollster, and two Election Day coordinators. 

National Electrical Manufacturer's Association: Govemment Relations /11rem (June-August 2007, 
Arlington, VA) 
 
Assisted legislative outreach, including meetings with members Congress and staff. 
 
Edited reports regarding issues ranging from trade policy energy efficiency. 
Office State Representative Carl Sciortino: Legislative Fellow (September 2006-December 2007, Boston, MA) 
 
Drafted and researched specific legislation and wrote testimony for legislative hearings. 
 
Assisted constituent correspondence, including issue letters and service requests. 
From: Blenkinsopp, Alexander (CFPB)  
To: _DL_CFPB_AllHands  
Cc: Adamske, Steven ; Moore, Megan; Hunt, AnitaMaria ; Wallace, Kim ; Wolin, Neal ; Warren, Elizabeth (CFPB); Fitzpayne,Alastair ; LeCompte, Jenni; Murray, Colleen  
Bcc: 
Subject: CFPB Press Clips 3/24 
Date: Thu Mar 2011 13:48:40 EDT 
Attachments: 
Press Clips 3/24/2011 
Index 
Click publication title find its location this e-mail. Click article title its source website. 
Consumer Financial Protection Bureau 
Mortgage Docs Your Mortgage  American Banker  Its the Right Time Right-Size Bank Regulation  American Banker  Four State AGs Object Proposed Servicer Settlement  Wall Street Journal  FDICs No. Top Contender Succeed Bair  Main Line Media News (Pennsylvania)  Reactions Women America: Indicators Social
  Washington Post  Daley recuses self from nominee search for consumer protection head  
  Bloomberg  Daley, Obama Chief Staff, Wont Play Role Consumer Search  
  Bank Systems Technology  Vetting the Consumer Financial Protection Bureau  
  Reverse Mortgage Daily  First Order Business For CFPB, Consolidate TILA and RESPA 

  Bangor Daily News (Maine)  Elizabeth Warrens Role  
  Reuters Breakingviews  U.S. bank watchdogs face leadership vacuum  
  Chronicle Herald (Halifax, Canada)  Financial watchdog sets stage for Obama 2nd term  
  Mother Jones  Roves Crossroads GPS: for Facts  
  Credit.com  The CFPB and Congress Need for Adult Conversation  
  Fox News  Glenn Beck Program  Labor Organizer Stephen Lerner Wants You Stop Paying 

and Economic Well-Being 
Consumer Credit 
 American Banker  Bernanke Pledges Effort make Durbin Carve-Out Work for Community Banks  American Banker  Best-Practices Movement Payments 
Housing  New York Times  Letter: Proposal Mortgages  American Banker  Restore Common Sense Mortgage Underwriting  Housing Wire  SEC clears shareholder vote for foreclosure reviews major banks  Housing Wire  Mortgage modifications benefit investors more than tests find: CRL  Housing Wire  Freddie Mac tells servicers not foreclose MERS name  Housing Wire  Texas HOA bill prevent foreclosures active military passes Senate  CNNMoney  Florida courts face $72.3 million deficit from foreclosure freeze Washington Post 
Daley recuses self from nominee search for consumer protection head 
March 23, 2011 Brady Dennis and Zachary Goldfarb 
President Obamas new chief staff, former banker William Daley, has recused himself from the search for nominee lead the Consumer Financial Protection Bureau, signature piece theadministrations overhaul the financial regulatory landscape. 
Before coming the White House January, Daley oversaw, among other things, J.P. Morgan Chases lobbying operation the bank opposed the creation the new watchdog. Daley was among several top executives who decided the bank would support new consumer protections but not new regulatorto enforce them. 
White House spokeswoman Amy Brundage said statement that, chief staff, Daley may beinvolved matters involving the CFPB and not recused from those matters. However, Mr. Daley haschosen not participate the process selecting nominee for CFPB director. She added that presidential counselor Pete Rouse leading the process. 
While Daley has stepped back from the issue  well any matter involving his former employer  the White House has had steady pressure nominate someone the high-profile post. 
The consumer bureau, intended protect borrowers from abuses lenders, was one the mostcontroversial elements the debate over financial regulation Capitol Hill last year. 
Concerned that Harvard law professor Elizabeth Warren  longtime consumer advocate whoconceived the regulator position 2007  would face contentious confirmation battle, PresidentObama appointed her September temporary post overseeing its formation. 
More than six months later, the bureau has hired more than 100 employees and secured office spacenear the White House. But the president has yet nominate permanent director, and everyone from Capitol Hill Republicans consumer advocates have been barking the White House get with italready. 
This need that unites everybody affected the new bureau  the regulated community and the consumers, said Travis Plunkett, legislative director for the Consumer Federation America, whose organization has been pushing for nomination for months. 
Groups such Plunketts have long clamored for nominee  most believe that Warren remains the best candidate  and have argued that further delays threaten weaken the fledgling bureau, whichlegally cannot flex all its new legislative muscle until confirmed director place. 
If the bureau opens its doors July without director, wont able use all its authority protectconsumers, Plunkett said. And that will major problem for consumers. 
Some banking officials, who largely opposed the creation the consumer bureau grounds that itwould create burdensome and unnecessary regulations, also have been urging Obama speed nomination. 
We would like know what going happen us, said former Oklahoma governor Frank Keating (R), American Bankers Association president. said obviously worrisome for potentiallysubjected regulation, potential oversight facto director who hasnt been confirmed the Senate. 
Republicans Capitol Hill, who almost universally fought the creation the new bureau, have been calling out Obama for his failure nominate someone the post, which comes with five-year tenure.They dont like the idea Warren remaining her current role indefinitely without the blessing ofCongress. 
Sen. Shelby believes that President Obama should fulfill his responsibility nominate qualified individuals wherever the laws calls for him so, said spokesman for Sen. Richard Shelby (Ala.),the ranking Republican the Senate banking committee and frequent Warren critic, who would holdmuch sway over the confirmation process. 
Warren seems recognize the pressure put someone the directors chair. 
Congressman, Ive tried make clear that important that have nomination, she told HouseFinancial Services Committee chairman Rep. Spencer Bachus (R-Ala.) hearing last week. I amaware the need for urgency. 
While the White House has considered many potential candidates, decision appears imminent.Warren has deflected inquiries about whether she hopes get the nod, but she has not said she wouldnt accept the role. 
Since Warrens interim appointment last fall, Republican power the Senate has grown, making allthe more difficult for the White House get any nominees confirmed. 
Brundage said Obama would try nominate someone soon possible and praised Warrens worksetting the agency. Over the past six months, Elizabeth Warren and her team have been extraordinarily effective, she said. 
Back Top 
Bloomberg 
Daley, Obama Chief Staff, Wont Play Role Consumer Search 
March 24, 2011 Roger Runningen 
illiam Daley, President Barack Obamas chief staff and former banking executive JPMorgan Chase Co. (JPM), wont participate the selection nominee for the new Consumer Financial ProtectionBureau, the White House said. 
Daley, 62, who took over White House chief staff January, may involved matters involvingthe CFPB and not recused from those matters, spokeswoman Amy Brundage said statement.However, she said, Mr. Daley has chosen not participate the process selecting nominee for CFPB director, the statement said. 
The Obama administration searching for person become the first director agency created the Dodd-Frank regulatory overhaul law. Treasury Secretary Timothy Geithner has designated July21 the starting date for the bureau, which would perform watchdog role overseeing credit cards, mortgages and other financial products. 
Daley the former Midwest chairman and head corporate responsibility JPMorgan. The Washington Post, which first reported the story, said Daley oversaw Chases lobbying unit, whichultimately supported consumer protections but opposed regulator enforce them. 
Pete Rouse, senior adviser Obama, leading the selection process for the first director theagency, Brundage said. 
Confirmation Questions 
Elizabeth Warren, the Treasury Department and White House adviser charged with setting theagency, hasnt been publicly ruled out potential nominee. Still, the consumer advocate and Harvard law professor took over adviser help set the agency after Democratic lawmakersexpressed doubts about whether she could win Senate confirmation. 
Warren said interview with CNBC March that there process place that the presidentis using find the agencys first director and declined say whether she wants the nomination. Thejob want the job have now, she said. 
Jennifer Granholm, former Michigan governor, turned down overture from the Obama administrationto head the agency, Bloomberg News reported March 22. Granholm left office Jan. after two terms governor. 
Daley took over chief staff after leaving JPMorgan Jan. resigned from the boards Boeing Co. (BA) and Abbott Laboratories (ABT) the same day. 
His background business and finance joined New York-based JPMorgan, the second-biggest bank assets, 2004 was among the reasons Obama picked him for the job, the presidentseeks reach out the business community the second half his term. 
Daley was President Bill Clintons commerce secretary from January 1997 June 2000. served aspresident SBC Communications Inc., now ATT Inc. (T), for more than two years before moving JPMorgan. 
Back Top Bank Systems Technology 
Vetting the Consumer Financial Protection Bureau 
With mandate regulate banks the name the American public, Elizabeth Warren and the Consumer Financial Protection Bureau have some lofty goals. But fielding consumer complaints andscrutinizing banks' activities will require some serious data-crunching magic. Meanwhile, banks facetheir own ongoing data management challenges. 
March 23, 2011 Matt Gunn the Consumer Financial Protection Bureau prepares open its doors for business July and,under the auspices the Dodd-Frank Wall Street Reform and Consumer Protection Act, and begin itsmission regulating consumer financial products, looking for unique partner. The new regulatory body's facto leader, Elizabeth Warren, assistant the president and special adviser the Secretaryof the Treasury the Consumer Financial Protection Bureau, has turned the public for suggestions. all, the Consumer Financial Protection Bureau will serve the public performing outreach andresearch, collecting and tracking consumer complaints, ensuring equal opportunity, and providing financial education. that role, and level that directly affects banks that is, monitoring 
and acting upon consumer complaints and collecting research banking activities the CFPB's mission comes down one thing: how manages data. 
But Warren's ideal public-private partnership will create some serious data challenges for theregulator. "If [Warren] has millions people giving her pieces information, then that's fantastic," saysRon Ruckh, managing director financial services for Devon, Pa.-based global expert services and consulting group LECG. don't know the technology she's using how the bureau going analyzethat data. The amount data that can be, can't even assess value number that." 
Warren, Harvard law professor, author and expert finance and bankruptcy, has been chief adviserto the National Bankruptcy Review Commission and was the first academic member appointed the Federal Judicial Education Committee. While Warren's office did not respond requests for commentfor this article, she launched the Consumer Financial Protection Bureau's website January with asimple message: 
"The idea was put cop the beat enforce the laws credit cards, mortgages, student loans,prepaid cards and other kinds consumer financial products and services," Warren said video introducing the bureau the public. "We're also here voice Washington for you." 
While she acknowledged the video that there's work done get the bureau off the ground,Warren emphasized that won't successful without ideas generated the public. "We are nowopen for suggestions," Warren continued. "In the coming days and weeks we'll gather all your ideas for the new consumer bureau. We're going think through your comments and concerns, and then puttogether some video responses." 
Social Butterflies that end, the bureau's website, consumerfinance.gov, appears have been set with the socialweb mind. every blog post, video and update, there are social elements encouraging visitors tohelp broadcast the message virally across Facebook and Twitter. But also aims get people send message back the CFPB. "For the first time many years, have the opportunity create abrand-new consumer agency from the ground up," Warren explained the video. "We want make sure that you are with all the way while build it." channeling the zeitgeist that dictates the general public generally shares its thoughts and feelings through social media, the CFPB doesn't actually list telephone number its suggestion solicitationpage, but rather takes more decidedly Web 2.0 approach. The CFPB website looks for suggestionsvia Twitter (using the #cfpb hashtag), through YouTube video response through built-in e-mail contact form. 
Monitoring the entire social web for consumer input valiant undertaking, LECG's Ruckh suggests. opens unprecedented amount transparency and potential for widespread customer insight onwhat working and what isn't working consumer banking. But also creates massive amount data sort through before the bureau even begins asking for banks' input. And not all thatinformation will useful. 
For example, "If turn around and tweet from phone because got annoyed bank, now you'relooking some information that means nothing," Ruckh says. bank annoyed me." 
While it's unknown which monitoring tools the CFPB using, the regulator already has shown signsthat it's listening, posting (as press time) eight response videos various questions either explaining what the bureau working its goals within certain area, simply where consumerscan find more information. 
But the bureau's job only just getting started; fact, it's still being defined. "At the end the calendaryear there were still upcoming Dodd-Frank Act final rules that had not been issued yet, just the consumer protection area alone," says J.H. Caldwell, Charlotte, N.C.-based partner Deloitte'sregulatory and capital markets group. 
Meanwhile, the Consumer Financial Protection Bureau already has one thing from banks, consultantsand the general public alike: everyone's attention. "Everybody's waiting see how they pull off," LECG's Ruckh says the CFPB's enormous mission. "It's going interesting thing. Everythingthat Ms. Warren has announced how she wants it, think some great stuff. really want tosee executed." 
While the CFPB continues gather public input, and while the final rules under Dodd-Frank are established toward the end protecting consumers, there still time for banks begin proactivelyaddressing the potential changes ahead. the CFPB addresses the challenge sorting through thepotentially massive amount data coming from consumers, there's opportunity for banks align with several best practices that, while not yet necessarily tied written rules, could the differencebetween organization ready react new regulation and one that has to. 
"You'll see banks that are reacting this series different ways," Deloitte's Caldwell says. "One ofthose reactions from banks that they're willing sit back and wait. think that's setting themselves for little bit fire drill when those rules take place. Some banks are working understandeverything it's coming out, developing strategy and moving forward. think those organizations aregoing find these activities easier." All Comes Back Data where does the preparation begin? "It all comes down data," LECG's Ruckh asserts, repeatingthe oft-heard mantra. "Always has, always will." 
Regardless any specific legislative demands, solving the data problem nothing short offundamental, experts agree. 
"One could also offer that there's element irony some this, from the technologyimplementation side," notes Mat Small, partner New York-based Capco's technology practice North America. "The work that people will need order affect [data] rationalization the singleversion the truth that's not new." 
But that doesn't mean preparing for whatever new rules the CFPB may enact lacks urgency. And, asDeloitte's Caldwell says, banks least the smart ones are mobilizing teams address regulationat enterprise level right now. 
"There's clearly lot activity that's going on," relates. "If you think consumers individually, thebanks, whether it's data technology even the process the people they still operate silos." And those silos stand the way obtaining view the customer akin what Capco's Small described single version the truth. 
And Caldwell, this the real problem. The age-old issue separating products and channels agreater weakness than ever under the supervision the Consumer Financial Protection Bureau. The CFPB, its nature, suggests, won't weigh one channel against the next, one consumer'sinteraction with one product versus that same consumer's interaction with another. matter how many products bank offers, under whatever terms configurations add-ons, all comes back tounderstanding customer's interaction with those products and relationship with the bank across all channels. 
"What we're seeing some organizations come and say, 'Hey, have one customer continue run these channels individually, we're impacting the cutomer experience,' Caldwellexplains. "You can't gain enterprise efficiencies not managing all channels together." 
According LECG's Ruckh, the first step aligning data, streamlining processes and having singleversion the truth report government regulators simple reflecting the old adage, "Thecustomer comes first." "Somewhere has come back client service," says. 
"Once you can centralize client, then the Consumer Financial Protection Bureau going getall their information and you know everything about the client. Therefore, you match up," Ruckh adds. "To me, all swings back together." 
Renewed Urgency 
All this has upped the urgency among banks get data management right. From bank perspective, data rationalizaton and analytics can help build clear picture the customer and how thecustomer interacts with the bank's various products. Reporting the CFPB simply adds incentive toget right. 
"The drivers the past continue exist today," Capco's Small says. "[The CFPB] just incrementaldriver that's going force data rationalization become more front runner terms spend. It's significant push, data rationalization some can argue that it's been listed one the top five ortop priorities large financial institutions for the last years." 
The banks that ultimately are most successful will those with clear vision from leadership thatdictates the reporting requirements the CFPB are met with organized strategy and data that points single version the truth. "While the analytics may rudimentary basic the silo thespecific line business, it's much more difficult for the organization enterprise produce,understand and mobilize itself around that information," Caldwell explains. "Clearly think the business going drive the conversation because they are going the ones that organize what that needs done." 
Depending the size the organization, that could translate several different technologyapproaches, adds. But every level the threat new regulation also could mean opportunity for sunset legacy systems and modernize the ways bank does business from technologyperspective. "This actually gives them opportunity get right," Caldwell says. 
Back Top 
Reverse Mortgage Daily 
First Order Business For CFPB, Consolidate TILA and RESPA Mortgage Docs 
March 24, 2011 John Yedinak 
The first initiative for the Consumer Financial Protection Bureau (CFPB) consolidate the Truth inLending Act (TILA) and Real Estate Settlement Procedures Act (RESPA) documents create form that consumers can understand, said the leader the agency Tuesday. 
Speaking before the Independent Community Bankers Association San Diego, Calif., Elizabeth Warren, special adviser the Treasury Department, said the changes should also help cut down onregulatory costs for small banks and help consumers understand the terms. 
When comes piles paperwork, less better for you and your customers, she said. And well beon the hunt for other places where can the same thingfind way give the consumersomething shorter and clearer, and cut your regulatory costs the same time. 
Created under the Dodd Frank Act, the CFPB will become the primary regulator for the entire mortgageindustry when opens July. Warren said the agency anticipates more than half its budget will put toward establishing supervision and meaningful enforcement. 
We cant enforce the law only against the banks that are easiest find, she said. Instead, willbuild strong enforcement arm that will put significant federal resources behind ensuring compliance bynon-bank financial companies. passed Congress, the CFPB also responsible for conducting study reverse mortgages determine any deceptive practices and figure out whether suitability standards are necessary. will alsodetermine whether additional safeguards are needed protect consumers from being sold reversemortgages fund inappropriate annuities, investments, and other financial products. 
Back Top 
Bangor Daily News (Maine) 
Elizabeth Warrens Role 
March 23, 2011 
Editorial 
The Oscar-winning movie Inside Job, with its guerrilla journalism and name calling, bit overblown,but its message clear and correct: The big banks, federal agencies and leading economists caused the recent financial crash and recession with their greed and hubris and blind devotion deregulation. 
Whats more, try climb out the mess, many Americans still suffer from job and mortgage insecurity while many the rich who brought this enjoy, once again, huge profits, bonuses andreduced taxes. short, the documentary suggests, financial struggle exists between the big financial industry and the millions ordinary Americans trying cope with reduced standard living. 
The conflict out balance. Rank-and-file Americans need champion even the scales and protect them from the lingering effects recession and the grasping requirements unregulated financial system. 
Thats where Elizabeth Warren comes in. She Harvard law professor and longtime consumeradvocate. She led pressing for creation Consumer Financial Protection Bureau and now running the new agency special assistant the president and special adviser TreasurySecretary Timothy Geithner. Funding from the Federal Reserve System, looks beyond the reachof congressional critics. starts work officially July 21. will monitor Wall Street and the banking industry regulate products considers unfair, deceptive abusive and press for flexibility modifying mortgage terms. should hit abuses the big players butavoid needless rules for smaller community banks. 
Ms. Warren outspoken her promotion the marketplace that American families deserve. her new role, she told the House Financial Services Committee that she welcomed congressional oversight and recognized that Congress could overturn any rule-making the new bureau. Its webpage, www.consumerfinance.gov, combines sunny, protective approach with strict warnings thefinancial industry. says that companies shouldnt compete figuring out how fool you best. wonder that the big bankers and their friends among Republican leaders hate and fear her. HouseFinancial Services Committee Chairman Spencer Bachus, R-Ala., called the bureau perhaps the single most powerful agency ever created act Congress. Republican Sen. Richard Shelby the SenateBanking Committee accused her and the bureau regulatory shakedown mortgage servicers their help for coalition the state attorneys general attacking foreclosure fraud. course Ms. Warren controversial, but need someone the working class side. 
Back Top 
Reuters Breakingviews 
U.S. bank watchdogs face leadership vacuum March 23, 2011 Rob Cox 
SAN DIEGO  The hour upon American banking regulators. Theyve been handed 2,000-plus pagesof new law the Dodd-Frank Wall Street Reform and Consumer Protection Act that must transformed into workable rules and procedures, and then implemented fulfill the legislationspromise make the financial system safer. But theres problem: Many the watchdogs charged with the task face leadership vacuums. This could spell trouble. 
Without strong chieftains fight their corners, special interests may gain the edge the all-important rule-writing taking place. The risk that certain provisions are watered down practice, that onesegment the industry benefits the expense another. Without directors given clear power the president, and ideally the stamp congressional approval, its easier for these regulatory agencies tobe captured. 
Consider the vacancies. The Federal Deposit Insurance Corp, which safeguards Americas $7-plustrillion deposits, will see the term Chairman Sheila Bair end June. the Office theComptroller the Currency, which oversees 1,500 commercial banks, including those holding most the industrys assets, John Walsh has had the word acting his title since August. 
The Federal Housing Finance Agency, which oversees Fannie Mae, Freddie Mac and the Federal Home Loan Banks, led acting head. And there director the Office FinancialResearch, which supposed support the Financial Stability Oversight Council, the ber-agency consisting all the regulatory chiefs, identifying risks financial stability and responding toemerging threats. Finally, theres the newly-created Consumer Financial Protection Bureau, which alsohas official chief. 
These posts remain without settled leaders largely because the White House hasnt pushed forward nominees. But its equally true that Republicans have made clear theyd block, for example, Harvardprofessor Elizabeth Warrens accession the consumer bureau, whose formation she has beenchampioning. 
The Obama administration may unwilling risk political capital appointments acronymicbodies voters probably dont recognize care much about. After all, the panic has passed and with some the urgency implement reform. But financial history repeats itself. Leaving most thebanking regulatory complex undermanaged such crucial time will only increase the probability happens sooner rather than later. 
Back Top Chronicle Herald (Halifax, Canada) 
Financial watchdog sets stage for Obama 2nd term 
March 24, 2011 Bogdan Kipling 
Elizabeth Warren, the Obama Administration czarina charge consumer financial protection, has launched "charm offensive" convince Americas bankers take multi-billion dollar hit defaulting government-endorsed housing loans. 
Unfortunately for the bankers, cosying the progressive Harvard professor now labouring forPresident Barack Obama losing bet with odds, and falling for her charm akin petting spitting cobra half-rations. 
Ms. Warren already has crisscrossed the country  both plane and conference call  chat with bankers ranging from Wall Street giants small-town lenders rural Texas. 
Most say they remain skeptical; and that wonder. After all, secret that bankers hate lose money when their own. 
Mr. Obama hand-picked Ms. Warren set the new Consumer Financial Protection Bureau manner that would allow her write the rules and the merciless whip keeping banks, mortgagebrokers, payday lenders, debt collectors and credit unions line. 
But, Washington insiders say, the worst yet come. The expectation among well-connectedlobbyists that Mr. Obama will install Ms. Warren president Frankenstein agency she now busy building. That Ms. Warrens name has never been sent the Senate for approval for her presentjob only heightens fears that Mr. Obama will use some ploy skirt the Senates likely rejection herfinal step total control. 
Many the banking community are convinced that Warren has structured the new agency such away better rob bankers freedom act independently the best interests their shareholders and customers when government regulations supplant the discipline the free market. 
Small wonder. Last August, even the Obama-supporting Washington Post spoke her fieryzealot disguised professorial glasses and pastel cardigans." her champions, she the defender ofpeoples money. true that her rhetorical record drips contempt for American bankers who, she says, use "tricks and traps" facilitate "massive looting from middle-class families." For good measure, she publiclyblasted Wall Street executives, claiming they were responsible for the financial crisis  "the people whodrove the car over the cliff" and then demanded taxpayer bailout. 
She wrote sweeping powers for the consumers bureau and the new guardians wasted timeasking mortgage servicing companies cough some $20 billion slashed borrowers mortgage principal and require them help low-income communities fighting urban blight. all the goodies smell grease for the next election, because they are just that. Ms. Warrens demands, though, seem particularly supportive Mr. Obamas bid for second term. Consider, thereanything better win votes than the cause urban blight? benefits all and reinforces loyalty election time. And that the very thing bring millions poor blacks and Hispanics living theblighted areas the polls. 
This marriage good intentions and politics well entrenched every democracy. the mothersmilk politicians seeking stay power and those who would throw out the rascals. The ins play tovoters self-interest and the outs their suspicions with the charge that "they" are bribing you with your own money. 
Ms. Warren has brought interesting variant this old warhorse play. righteous indignation, shewants chastise the greedy and reckless Wall Street gang and buy votes just cause. That isbrilliant you share her passion, and crime against capitalism now practised Wall Street. have blasted Wall Streets greed the past and remain convinced that Americas giant banks andinsurance companies continue engage what ought classed criminal practices. They are trading trillion-dollar IOUs backed bets bets nothing had happened September 2008 whentheir Ponzi racket crashed. 
The terrifying reality that the entire worlds economies hung hair, cost trillions taxpayers dollarsto rescue and impoverished millions people when their pensions evaporated the heat Wall Streets recklessness dismissed today never happened. 
The best that can said about Ms. Warrens mission that her integrity above reproach. President Obamas bank reform act she trying implement not. fashioned Swiss cheese with holesbig enough let pass any folly greed can beget. 
Americans often ask why Canadian capitalism escaped Wall Street-like trauma. The answer can beshort: Canadas banking laws and regulations are not Swiss cheese. 
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Mother Jones 
Roves Crossroads GPS: for Facts 
March 23, 2011 David Corn 
Crossroads GPS, the Karl Rove-connected dark-money outfit that works elect Republicans, nottoo strong the fact-checking department. reported this morning, the group has kicked off transparency initiative targeting the Obama administrationwhich bit hypocritical, given CrossroadsGPS' refusal disclose its funders. part this project, has touted the "breaking news" scoop that Elizabeth Warren, the White House aide overseeing the start-up the Consumer Financial ProtectionBureau, had dinner with the American Prospects Bob Kuttner, DailyKos.com's Markos Moulitsas, and me. government official dining with journalists and pundits hardly stop-the-presses material. But, noted, Crossroads GPS was wrong: have never dined with Warren (though I'd delighted so).A Crossroads GPS spokesman told that (non-existent) dinner with Warren was listed herofficial schedule, which Crossroads GPS has posted new web site for this transparency project. 
Now that I've checked the documents, I've found that original story was not accurate couldhave been, for Crossroads GPS was more wrong than had assumed. 
The site does list Warren's calendars for the last three months 2010. appear her October 19,2010, log 5:45 PM: "Interview with David Corn." Yes, I've been caught practicing journalism. That interview was for article that appeared days later and that noted had interviewed her. Journalist interviews Warren the record: scoop here. Plus, her calendar listed her dinner date for that night; was Mitchell Kapor, information technology pioneer. That would have been fun dinner attend. for Moulitsas and Kuttner, the calendars note that Warren had two phone calls scheduled with Kuttner and one breakfast scheduled with Moulitsas. dinners with any us. Zero for three. 
And there's more the hypocrisy front. original piece neglected cite Politico article from lastOctober reporting that when Rove began his American Crossroads effort, the GOP operativesdeveloping the organization claimed they relished transparency and would disclose their donors. But when became tough raise money, Rove and his pals specifically created Crossroads GPS theycould accept secret contributions. Politico noted, "With the Crossroads fundraising team, led Rove, emphasizing prospective donors the ability give Crossroads GPS anonymously, fundraising tookoff." 
Crossroads GPS was designed end-run around transparency. Now it's claiming championof openness. Maybe Rove invites dinner, can discuss what's wrong with this picture. 
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Credit.com 
The CFPB and Congress Need for Adult Conversation 
March 23, 2011 Adam Levin 
The Republicans, now control our House Representatives, love talk about having adultconversations about things, and cant for the life figure out why, when comes consumerprotection, certain members the GOP insist speaking all like were either too young stupid understand just how badly the American people have been hammeredboth the financialservices industry and our elected and appointed representatives who clearly abdicated their responsibility keep tabs them. This absolute disconnect from the American consumer was ondisplay last Wednesday when Elizabeth Warren testified before the House Financial ServicesCommittee. 
Warren, special advisor the president charge setting the new Consumer Financial Protection Bureau, possesses unparalleled bona fides when comes advocating behalf averageAmericans who have been worked over big banks and lenders (read this Newsweek article for someof the particulars). Yet many the House Republicans the committee questioned her almost though she was the one responsible for destroying the economy. though they, the deregulators, arethe real consumer protectors. opposed the person whos actually been protecting consumers for the last couple decades. quote Will Ferrell: feel like Im taking crazy pills. 
The hearing, fact, featured succession Republicans questioning the legitimacy the CFPB and,by extension, Warren. Rep. Blaine Luetkemeyer (R-Mo.), opined that the CFPB the last thing that our lenders need. Actually, sir, its the last thing they want, but its exactly what they need. And youknow who else needs it? The people your district. Its worth noting that prior his election 2008 the good Congressman was bank vice president, and loan officer. have doubt that the gentleman from Missouri sincerely cares about the people his district, but cant quite stomach aformer banker objecting the CFPB because its bad for banks. Frankly, its the laissez-faire philosophy and his colleagues espouse that promoted the environment financial illiteracy,predatory financial products and services, yield-hogging, Bernie Madoff and Allen Stanfordto name fewthat almost took all under. addition Rep. Luetkemeyers concern over the CPFBs effects banks, Committee Chair Shelley Moore Capito  WV) said that she felt the creation the CFPB represented new bureaucracy withlittle congressional oversight. Actually, Congress the bureaucracy and other than that one briefshining moment when enacted Dodd-Frank and the CARD Act, doesnt have particularly great record late consumer protection. While understand the concern about oversight, consumerprotectiona sacred mission lifeis too important get stuck the political quagmire. 
Later, Rep. Robert Dold, (R-Ill.) characterized the CFPB offering theoretical consumer protection.Seriously? For some, consumer protection punchline. For Warren has been guiding principle. She has been screaming from the rooftops for years about the injuries and indignities visited uponAmerican consumers the financial institutions that both Democrats and Republicans were supposed monitoring. But precious few you listened her. And now you have the chutzpah suggestthat her brand consumer protection theoretical, implying that yours real? Where were you thesepast several years when the financial services industry was shaking down the American consumer? 
Republicans are pulling out all the stops the hopes that theyll kill the CFPB before really getsgoing, raising issues about CFPB employees consulting with state attorneys general who are trying eliminate fraud from the mortgage servicing business; about how the CFPB funded. all seems quitepetty. The law establishing the CFPB was drafted shield from Congressional tampering and advertised, Republican Members the House are trying tamper with itlimiting its funding andworking undermine the woman who fought for and working hard turn the concept into reality. 
Ultimately, there wasnt particular theme the questioningrather was more like series snipes.It seemed that they were trying take her down any means necessary. Actually, now that think about it, there was theme: political suicide. The sniping from rank and file Republicans theFinancial Services Committee may political theater, but they ought consider the real worldramifications taking this approach. Rep. Barney Frank (D-MA), the former Chairman the House Financial Services Committee, pointed out Mondays Morning Joe, This not just the left and the right. The Republican Party isunited against healthcare and united against the environment. Theyre not united against financialreform. The Tea Party people didnt send people Washington defend derivatives. think the fight over Elizabeth Warren would worth having and Im not sure how all the Republican senators wouldvote. agree with him. think this issue that crosses party lines and that, broadly speaking, theAmerican people see through the rhetoric. They want someone out there watching their backs, whos smart enough and tough enough take the financial services industry when they step out line.Now who you think better suited for that job: Congress Elizabeth Warren? frankly dont understand why Republicans dont support Elizabeth Warren. And please dont give methe Tea Party mantra about how the world would perfect only government would get out ourlives. Instead trying find way work with her protect consumersand last time checked, these politicians represent and, fact, are consumersthey want demonize her and strangle thenewly created CFPB. not unreasonable guy. dont disagree with Rep. Capitos recently stated objection Warrensoveruse the phrase cop the beat, which pretty considerable admission coming from guy who loves good catch phrase. However, does accurately describe what have lacked heretoforeand sorely need today. 
Here are some the most important things Elizabeth Warren wants do. Can any reasonable personoppose them? 
 Prohibiting mortgage brokers from making greater commissions steering borrowers morecomplex financial roach motels hi-bred adjustable financial instruments. 
 Raising the bar for Americas financial literacy. 
 Mandating shorter, more easily understandable mortgage and credit card contracts. 
Isnt educated, financially hip, less risky borrower who tells the truth about his her ability pay and actually does pay better for our financial system? Isnt time for the Gotcha conduct financial relationships replaced civility, transparency and fairness? world where supermarkets are mandated unit price can peas, how possible that banks have yet offer unit price for acredit card? have golden opportunity finally something right for the American consumer not onlysaying that are making institutions more accountable but actually making them more accountable us. Isnt that the battle cry the Tea Party? 
Lets all try have adult moment here. The financial system needed something far more structured and lasting than Congress simply consigning banks and credit card companies few minutes theregulatory time-out chair. Elizabeth Warren and her team the CFPB are doing the job that American consumers want and need them do. Perhaps instead sniping from the cheap seats, Congressionalcritics might give them some slack and allow work progress progress. 
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Fox News  Glenn Beck Program 
Labor Organizer Stephen Lerner Wants You Stop Paying Your Mortgage 
March 23, 2011 
. 
BECK: Even though you knew was going happen, somehow it's still shocking, isn't that, that virtually major media outlet digging deeper into story that had exclusive uncovering ofyesterday. hard imagine how people can ignore one the most individual leaders the union movement who actively plotting collapse the United States stock market and cause anotherfinancial crisis intentionally. happy report tonight that least one congressman it. Now, this one there morecongressmen understand than it. This one has the job done. letter Eric Holderdemanding know what the DOJ will about it. And they don't anything about it, Congress, the Committee Oversight and Government Reform the principal oversight committee the House Representatives and may any time investigate any matter. 
This Jason Chaffetz that has done this. But have heard from Washington there are few that arelooking into this matter. We're excited see who will move first. 
 
That's where that's where would cover economic terrorist attack with the columnist. One their left-leaning writers, and have say this, least was honest. talked about the guy played for you yesterday and we'll play again here just minute, Stephen Lerner, who the SEIU guy. 
This article says about Lerner, "He one the smartest organizers not the smartest organizer working the labor movement right now. month two ago, when began asking around for forward-looking labor thinkers who could give some ideas for where the leaders should after Wisconsin,he was the first name was given, even though longer actually employed his union." Not sure that's true. 
The article went say that there was much fear Lerner's plan trigger another financial crisis. But also said that there's fair amount that like. And think may have told you yesterday,that will happen. lot people are going agree with what Lerner says, which essentially that the regular Joe being screwed over the big banks. 
. 
But want you understand who this guy is, Lerner. This guy pressured this administration nominateElizabeth Warren run the Consumer Financial Protection Bureau. This the one that overseas the Wall Street reform bill. But it's also she also it's going your protector. She going watchout and make sure nobody screws you all. It's office the Fed. So, she doesn't really have any oversight. fact, Lerner not only pressured this administration get her in, also here the 7th December visiting her the Treasury Department meet about the implementation the financialreform bill. 
Now, let ask you this. Lerner pressured the administration nominate Elizabeth Warren, weknow the White House knows who is. And has contacts the White House, because he's also visited the White House least four times. has enough juice get his nominee pushed through. know that met with her December the Treasury Department. 
. 
Maybe more and more people should watch this show. know that Stephen Lerner influencing reform and how works the banks our country. Does Elizabeth Warren know about his economicterrorism? She seems like nice lady. may not get information from her, either since her office technically part the Fed and they're never secretive all. They are totally wide open, you know, justanother those transparency things Obama high on. 
. 
BECK: inconceivable that the administration can pressured choose this guy's pick, Elizabeth Warren, that can visit the White House four times, that "The Washington Post" columnist can callhim the best guy labor, that Andy Stern was the top visitor the White House, Trumka there all thetime and they still aren't aware the plans. 
. 
Joel Rogers calls Lerner brilliant tactician, someone who proved the worth aggressive organizing.Wade Rathke says Lerner one the best organizers for labor. 
Clearly, has the juice the White House, juice federal and treasury level visits and talks toElizabeth Warren. 
And it's clear that his ideas are still being used SEIU. 
. 
Back Top American Banker 
Its the Right Time Right-Size Bank Regulation 
March 24, 2011 Barbara Rehm 
The Dodd-Frank Act did something brilliant, but only did halfway. 
The reform law laid out plan for applying different and separate supervision for the largest, mostcomplex financial companies. Congress ought back and the same thing for the simplest and the smallest. 
Calibrating regulatory resources the risk posed institution not new novel idea, but idea that finally taking root and likely fundamentally change the nature supervision. 
"The definition community bank different animal never took hold until Dodd-Frank. Everyone said bank bank bank," said Jeff Gerrish, regulator turned consultant based Memphis whocounts hundreds community banks among his clients. "But that has changed.  The time certainlyripe for some sort tiered regulation." 
The tiered regulation mandated Dodd-Frank requires greater scrutiny well higher capital, liquidity and operational costs for the large, complex firms that present the greatest risk the financial system. 
But the law does not address the small, less systemic part the industry those companies that fallsomewhere between. That likely change regulatory resources are stretched thin and thesmallest banks make convincing case that they are being overregulated. think the crisis just lived through created the critical mass really look tiered structure ofregulation," said Cam Fine, the president and chief executive the Independent Community Bankers America. 
"There just has recognition national policy that there are two systems banks now," Fine said. "The regulatory apparatus needs catch with that evolution." some ways has. 
The notion risk-based supervision has been around for 20-plus years but has never been spelled out broad legislation that the agencies could implement uniform ways. 
Tiered regulation would actually take risk-based supervision step further, moving beyond segregating banks size and complexity adjusting which rules are applied which banks and how. 
Officials the Federal Reserve Bank Cleveland have been working supervisory plan they call "tiered parity," which envisions the same rules applied the same way different classes banks. 
"Risk-based supervision alive and well. What are suggesting addressing beyond just the supervisory programs the rules and regs themselves," said Stephen Ong, vice president thesupervision department the Cleveland Fed. "We think about not just terms supervision, but even ahead supervision there has the appropriate rules and regulations. They need rightsized the different tiers firms." joint interview with Ong, James Thomson, economist the Cleveland Fed's researchdepartment, stressed the "parity" aspect the plan, applying the same rules and scrutiny groups ofbanks with similar risk profiles. 
"That the essence tiered parity. You don't treat institutions the same along the scale, but you would treat institutions horizontally the same," Thomson said, adding, "We shouldn't expending resourcesto avoid something that very, very low probability the small-bank end." few examples tiered regulation already exist. For instance, 2006 law allowed the agencies tolengthen the exam cycle months for banks with assets less than $500 million and Camelsrating Community Reinvestment Act exams are also tiered depending size and past performance. 
And Dodd-Frank did make one nod smaller banks. exempted all banks with assets less than $10 billion from enforcement the new Consumer Financial Protection Bureau. The bureau will writeconsumer protection rules and enforce them against banks with assets more than $10 billion, but primary bank supervisors will provide the enforcement for small banks. 
The ICBA fought hard against that provision, and looking build its victory. Fine said the group rounding sponsors for its "Communities First Act," which has provisions affecting the oversight,taxation and reporting requirements facing small banks. 
"The foundation the Communities First Act tiered regulation," Fine said. "Banks need beregulated according scale." 
Changes the ICBA seeking from Congress include restoring dividend payments preferred GSEstock, forcing cost-benefit analysis before any changes are made accounting standards and reducing origination and program fees for rural and small-business borrowers. 
"We've succeeded getting into the minds policymakers that community banks have place our financial structure and they need helped out because they have been disadvantaged," Finesaid. "The phenomenon too big fail, which all just witnessed its full, tragic glory, has put new emphasis behind the idea that you should not treating $100 million bank the same way amegabank. 
"That just buries that local bank." 
Plenty community bankers have been relaying that message their congressmen and Republicans who took control the House this year are listening. House Financial Services Committee ChairmanSpencer Bachus has repeatedly said wants find way lighten the regulatory burden smallbanks, mainly way stimulating lending small businesses, which could then use that financing grow and create more jobs. one suggesting that examiners look the other way when small bank does something stupid. Thisidea tiered regulation would apply only healthy banks, ones the regulators have already judged tohave sound management, solid credit quality and plenty capital. For those banks, off-site monitoring could used track risk-taking. Any bank experiencing some sort departure from normaloperations  big growth spurt, for example  could flagged for quick attention examiners. 
But there need send teams examiners into well-run banks for weeks time and then leave the bank wondering for months about its rating, which common complaint these days. 
Those examiner resources could put better use. 
Former Comptroller the Currency Bob Clarke works with lot community bankers lawyer based Houston. says "the relationship between the regulators and the banks about bad have ever seen it." points commercial real estate lending example where tiered oversight could make adifference. Regulatory guidance instructs banks not let CRE lending exceed 300% capital but many small banks are way over that limit. Clarke says that's largely because many their borrowerspledge real estate for loans finance their businesses. 
"When you make loan, the collateral the building. Those are the kinds loans that communitybanks make," Clarke said, adding that CRE portfolios are typically more diverse and less risky than examiners may presume. 
"They don't enough thinking. They just look the numbers," Clarke said these examiners. "If the number above 300%, they nail them and require all this extra capital and killing communitybanks." Clarke, tiered regulation just makes sense. 
"It really goes back style regulation that more tailored small bank, where the risks are pretty straightforward and the remedies for problems are straightforward well," said. "You justdon't have with the same vigor" that's applied larger, more complex banks. 
Barb Rehm American Banker's editor large. She welcomes feedback her weekly column atBarbara.Rehm@SourceMedia.com. 
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American Banker Four State AGs Object Proposed Servicer Settlement March 24, 2011 Cheyenne Hopkins 
WASHINGTON  Four state attorneys general have sent letter Iowa Tom Miller objecting toprovisions the 27-page proposed settlement with the top five servicers. 
Attorneys General Kenneth Cuccinelli Virginia, Greg Abbott Texas, Pam Bondi Florida, and Alan Wilson South Carolina sent the letter Tuesday Miller, who leading the servicing settlement forthe AGs, arguing the proposed terms too far. 
"The term sheet appears reach well beyond the scope our enforcement role, and, someinstances, far exceeds the scope the misconduct which was the subject our originalinvestigations," the AGs wrote. "Many terms beyond enforcement into regulation that would have attorneys general deeply involved the review and monitoring the servicers' everyday businesspractices and would far mandating automatic review modification denial whether not requested the homeowner, and even dictating how payments should applied." 
The AGs wrote that the settlement, enacted, could hurt the housing market's recovery. 
"These and other terms could have unintended effect unnecessarily prolonging the foreclosureprocess and therefore delaying the recovery the housing market," they wrote. 
Specifically, the AGs took issue with Miller's push for principal write downs. 
"We are particularly concerned that the term sheet appears propose government-imposed solutionsto problems the financial markets that the investigation was never intended address," the AGswrote. "As some have expressed you and your staff the past, remain troubled that the term sheet proposes imposed heightened loss mitigation requirements and forced principalreductions mortgage servicers. Although loan modifications and principal reductions may work some cases, unfortunately there are many mortgages where these mechanisms will  and havebeen  ineffective." 
Last week, attorneys general from Oklahoma, Alabama and Nebraska also sent letter Milleropposing the settlement's principal cramdown. 
Miller presented the term sheet March the attorneys general conference Washington. Itcame response servicer problems such documentation issues and robo-signing discovered lastyear. His 27-page term sheet was presented the five largest servicers with the support the Justice Department, the Housing and Urban Development Department, and the Consumer Financial Protection Bureau. 
Miller and the regulators are now trying schedule meetings with the banks discuss the settlement.Meanwhile, the banks are working their own counter offer. 
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American Banker 
Bernanke Pledges Effort Make Durbin Carve-Out Work for Community Banks 
March 24, 2011 Kate Davidson 
SAN DIEGO  Federal Reserve Board Chairman Ben Bernanke assured community bankersWednesday that the central bank will attempt protect them finalizes its rule capping debit interchange fees. 
Speaking here the annual convention the Independent Community Bankers America, Bernankesaid the Fed "is quite aware" that Congress never intended for small banks subject theproposed limits. 
"In our rule-writing will everything can and use all the powers have try make sure thatthe carve-out effective," said. 
Bernanke, who has warned the provision could hurt small banks, said the Fed needs cooperation fromdebit card networks ensure that carve-out works. 
John Walsh, the acting comptroller the currency, also noted that Congress intended exempt bankswith less than $10 billion assets from the provision, which would limit the fees issuers can charge merchants for debit card transactions. said the exemption has little practical benefit, since the price that the Fed sets for large banks will ultimately the price for all institutions. 
Walsh said the Fed's proposal "crimps income more than necessary taking very narrow view ofcosts the law permits, and we've provided our views the Fed comment letter." 
Bernanke said Fed staffers have been working full time for about six months collect data, analyze the market and review more than 11,000 comment letters. The law has two parts, said. While smallbanks are ostensibly exempt from the part that would restrict interchange fees, said they are notcarved out from the portion the law that relates the networks that merchants use process those transactions. 
"In part creates more competition that merchants will have more choices about which way they want route their charges," Bernanke said. "Overall more competition this market will probably bringsome pressure interchange fees." 
The banking industry's campaign overturn the Durbin amendment has been gaining momentum, withHouse and Senate lawmakers introducing bills delay its implementation. But time quickly running out for Congress act; the Fed expected issue final rule April 21. 
Cam Fine, the ICBA's chief executive, said roundtable discussion with the news media Tuesday that the odds delaying the rule through legislation are still long the Senate, where bills need 60votes advance. "All that said, think over the last two weeks have gotten some traction thisissue, and think have fighting chance," said. 
Fine said the ICBA has been speaking with Fed officials about taking "second look" the rule. 
Banks may also find relief with the judicial process. The ICBA, along with other national tradeassociations, filed amicus brief lawsuit filed TCF Financial Corp. seeking injunction against implementation. The group argued that the proposal was too narrowly defined. hearing thelawsuit set for April 
Bernanke also tried allay concerns about new capital requirements under Basel III. How implementthose rules for small banks that are not systemically important internationally active continues acrucial issue, said. 
"We recognize the importance striking the right balance between promoting safety and soundnessthroughout the banking system and keeping the compliance costs for smaller banking firms low possible," Bernanke said. 
The focus far has been new requirements for larger institutions, Bernanke said. said thecommittee also agreed allow long transition periods for the implementation the new rules part tominimize the impact the rules credit availability. 
"We know and understand that it's going take time both for regulators get good grip those changes and also for banking institutions implement them," said. 
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American Banker 
Best-Practices Movement Payments 
March 24, 2011 McKinley 
Payments industry experts are volunteering establish best-practices recommendations for integrated payments through automated teller machines conjunction with the ATM Integrated PaymentsStandards Forum organized the ATM Industry Association's International Payments Forum. 
The forum developing open-standards approach achieving broad acceptance alternative andnontraditional payments through ATMs. addressing software and hardware considerations,determining appropriate financial services for ATMs and exploring ways support new payments applications, such mobile and cardless transactions, the association said. 
The initiative's goal bring together key industry stakeholders and develop best-practice standards for message and communications protocols, security and compliance, mobile and cardlesstransactions, and use-case recommendations. 
Back Top New York Times 
Letter: Proposal Mortgages 
March 23, 2011 Frank Keating the Editor: Another Inside Job (column, March 14), Paul Krugman endorsed the proposed settlement betweenthe state attorneys general and five the largest mortgage servicing firms the nation, andcondemned those policy makers who have questioned criticized the proposal. 
Lets clear: The state attorneys generals proposal just that  proposed settlement. Even theallegations against the firms involved are proved accurate, doesnt mean the entire mortgage industry systemically flawed and need wholesale restructuring. 
The proposal would fundamentally restructure the mortgage industry  mandating changes everydetail how servicers operate. would also turn their head traditional concepts borrower care,individual responsibility and the common sense not take more debt than one can reasonably repay. 
Mr. Krugman laments, Its the prosecutors who find themselves trial. Prosecutors must prove their case before penalty imposed. Thats their job. Policy makers who are now raising questions aboutthe merits this proposal are applauded. They are doing their job.
Frank Keating 
President and Chief Executive 
American Bankers Association 
Washington, March 16, 2011 
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American Banker 
Restore Common Sense Mortgage Underwriting 
March 24, 2011 Joe Garrett 
The residential mortgage sector needs return its roots when comes how credit decisions aremade. 
Let's take walk back time. 
When joined the industry the late 1970s, loan files were thin. Underwriters with decade more ofexperience would look the credit report, verify the source the nonpayment, make certain the borrower was employed and calculate the debt-to-income ratio. There were FICO scores, butunderwriters knew how analyze the credit report and they tended make sound decisions. 
There were automated valuation models. 
Back then there was hegemony the two government-sponsored enterprises, and most mortgage bankers sold loans and serviced them for variety thrifts and other institutional investors which settheir own criteria. 
Although the phrase became overused and abused, big part the process was what was calledcommon-sense underwriting. 
Rather than worshipping arbitrary rules like never making loan someone with FICO down to,say, 580, how about making very human credit decision that, like the old days, looks all the facts? 
What someone putting 60% down purchase, has 28% debt-to-income ratio, highly liquidwith well few million the bank, and has never missed mortgage payment his life? sounds pretty good, doesn't he? 
But what went through protracted illness few years ago and now has FICO 580? unfair seems, this poor fellow simply not going get loan from any lender that sells itsloans the secondary market. And there longer thrift industry local portfolio lenders who could see through the fog arbitrary credit standards and see that this was perfectly good loan. this loan can get FHA insurance, and common-sense underwriter would surely insure it, can put into GNMA security and sold, servicing retained. 
What the American homeowner needs new breed mortgage banking leaders who are not afraid make that loan. heard about one mortgage banking company (Pacific Union Financial Walnut Creek, Calif.) that will loan like this. I'm pretty curious about things, called one their executives see they reallydid these kinds loans. When confirmed this, looked their FHA Neighborhood Watch Compare Score, and was shockingly low 31%. This means that their delinquencies were only 30% thenational average. 
This isn't thinking outside the box and it's certainly not groundbreaking new model. It's simply call forthe industry return the proven ways the past, ways that, all their quaintness and simplicity, worked much better than the brave new world arbitrary decisioning rules that failed over the pastdecade. 
Joe Garrett principal with Garrett, Watts Co., bank advisory firm. 
Back Top Wall Street Journal 
FDICs No. Top Contender Succeed Bair 
March 24, 2011 Victoria McGrane 
The Federal Deposit Insurance Corp.'s No. official, Martin Gruenberg, has emerged top contender succeed Sheila Bair chairman, people familiar with the matter said, move that couldbe part broader push the White House fill top bank-regulatory posts. 
Ms. Bair, Republican who has led the agency since 2006, plans step down when her term expiresin few months. Mr. Gruenberg has been the FDIC's vice chairman since 2005, having served briefly acting chairman before Ms. Bair took the helm 2006. 
Before joining the FDIC, was longtime aide former Sen. Paul Sarbanes (D., Md.). Mr. Gruenberg, Democrat, known expert banking law who believes strongly robust financialregulation. helped craft the Sarbanes-Oxley accounting rules that many Republican lawmakers andbusinesses opposed too onerous. took lead role helping design new division depositor and consumer protection last year. known quiet but strong advocate for the Community Reinvestment Act, which encouragesbanks make portion their loans low- moderate-income communities, and similar community-development initiatives. Republicans have criticized the CRA law helping cause the 2008 financial crisis. His potential nomination could roil some bankers who believe the government has become tooaggressive enforcing certain lending rules. 
Officials the American Bankers Association and Independent Community Bankers America tradegroups declined comment. 
Mr. Gruenberg has kept mostly low profile during his time the FDIC, though played key role inthe agency's handling the financial crisis and its aftermath. hasn't clashed with the banks since has been the FDIC, part because Ms. Bair has been the public face. White House spokeswoman and Mr. Gruenberg declined comment. 
The FDIC chairmanship often was seen marginal government job, but Ms. Bair transformed intoa muscular post with international profile. She played central, and times controversial, role the government's response the financial crisis. 
The agency insures deposits 7,615 banks, which combined have $13.4 trillion assets. More than300 have toppled since 2008, depleting the agency's fund that backstops deposits. The FDIC has hadto change the way charges assessments bring more cash, forcing banks prepay premiums some cases and charging larger banks more money. its lowest point the fourth quarter 2009, the fund dropped negative balance $20.8 billion, though has since recovered from that level. Ms. Bair said speech Tuesday that she expects thefund enter the black before the end the year. 
The FDIC emerged from the Dodd-Frank financial-overhaul law with new powers, including expandedauthority take over and liquidate failing financial firms that aren't banks. Most Republican lawmakers opposed the creation the Dodd-Frank law and are likely scrutinize how any new bank regulatormight try implement it. nominated, Mr. Gruenberg's appointment would subject Senate confirmation. Typically, formerSenate aides enjoy friendly treatment during nominations, but Mr. Gruenberg could face tough scrutinybecause the FDIC's expanded powers. spokesman for the panel's ranking Republican, Richard Shelby Alabama, declined comment. Still, Mr. Gruenberg's network contacts the Hill, bothDemocrat and Republican, could help him. spokesman for Sen. Tim Johnson (D., S.D.), chairman the Senate Banking Committee, declined comment. 
Mark Calabria, former aide Mr. Shelby who worked with Mr. Gruenberg the Senate BankingCommittee, said expects Mr. Gruenberg confirmed unanimously the Senate nominated. 
"He can tough and can partisan," said Mr. Calabria, who now director financial regulation studies the libertarian Cato Institute Washington. "But he's worked with lot people bothsides the aisle over the years. He's someone who will listen the other side." 
John Dugan, Republican who served comptroller the currency and was the FDIC's board with Mr. Gruenberg until last year, said would "great choice" lead the agency. 
"He has been exceptionally conscientious board member and knows the organization really well,"Mr. Dugan said. 
The White House could try package Mr. Gruenberg's potential nomination with appointments number other posts. The Office the Comptroller the Currency, which regulates national banks,and the Federal Housing Finance Agency, which regulates Fannie Mae and Freddie Mac, are bothbeing run acting directors, which haven't been confirmed the Senate. 
The White House hasn't picked someone run the new Consumer Financial Protection Bureau when itbecomes fully operational July. Senate Republicans could try force the White House include nominees they pick for some these vacant jobs order confirm package nominees. 
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Main Line Media News (Pennsylvania) 
Reactions Women America: Indicators Social and Economic Well-Being 
March 24, 2011 Bonnie Squire 
The quadruple whammy that devastated Japan: the earthquake, followed the tsunami, followed the nuclear crisis and shortages food, water and fuel oil, bumped lot other important but lesstragic news off the front pages the newspapers. 
And now have the British-French-American bombing Ghadafis tanks, aimed his own citizens,leading the evening and morning newscasts. 
But this still Womens History Month America, and really wanted bring your attention the White House report Women America: Indicators Social and Economic Well-Being. 
Collating statistics from five different areas  People, Families and Income; Education; Employment;Health; and Crime and Violence  the report measures things like the marrying age, the percentage women college and graduate programs, the percentage people living female-headedhouseholds, etc. 
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Elizabeth Vale has spent the last two years business liaison the White House: executivedirector the White House Business Council, working with Valerie Jarrett, President Obamas chiefadviser. Now she has moved become assistant director for community banks and credit unions the Consumer Financial Protection Bureau, which headed Elizabeth Warren. Vale says, It hasbeen great honor and privilege work for two inspiring and accomplished women leaders, Valerie Jarrett and Elizabeth Warren. 
Vale provided quote from Ms. Jarrett: The thing that were hoping men will focus on: this not womans issue; its family issue, said the head the White House Council Women and Girls. 
Vale praised the Council Women and Girls for taking the initiative issue the report. 
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Housing Wire 
SEC clears shareholder vote for foreclosure reviews major banks 
March 23, 2011 Jon Prior The Securities and Exchange Commission upheld New York City pension funds request that big bankshareholders will get vote whether not those vested financial institutions conduct foreclosurereviews. 
Shareholders Bank America, Citigroup and Wells Fargo will vote annual meetings this spring, because the ruling. Wells did not contend the proposal the SEC. January, The New York CityComptroller John Liu asked the boards the banks and JPMorgan Chase conduct the reviews tocatch potential problems related robo-signing and other documentation issues. 
Because similar group shareholders requested Chase conduct reviews, the SEC allowed the bankto remove the pension funds request from its annual meeting agenda. 
After these issues surfaced the third quarter 2010, major banks and servicers began internalreviews and began refiling affidavits. But the SEC rejected the banks' arguments that the problems were "technical glitches." 
"An independent examination bank foreclosure practices needed reassure shareholders and protect pensioners and taxpayers," Comptroller Liu said. "The necessity for this becomes even cleareras the weeks and months tick and more New Yorkers face losing their homes foreclosure. Regrettably, the banks have failed this and even went far try and kick off the ballot,but the shareholders have prevailed." 
Citi declined comment the ruling. 
Neither BofA Wells immediately responded requests for comments. 
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Housing Wire Mortgage modifications benefit investors more than tests find: CRL 
March 23, 2011 Jon Prior study from the Center for Responsible Lending, consumer advocacy group, showed more mortgage workouts benefit investors than current modification numbers show. 
The Home Affordable Modification Program and other initiatives use net-present value test determine modification benefits the investor more than foreclosure. the test fails when the mortgage reduced 31% debt-to-income ratio under HAMP, the borrower denied mod. Otherprograms have different thresholds. 
But the CRL studied more than 1,500 net-present value tests and found more modifications ended upbenefiting investors than actually went through. Setting redefault rate these loans high 79%  which roughly double the rate reported the Office the Comptroller the Currency  paymentreductions 20% would still benefit investor more than foreclosure. 
Modifications still outnumbered foreclosures the largest banks. the third quarter, the were 382,000foreclosures, compared 470,000 trial permanent modifications granted, according the latest data from the OCC. However, another 1.2 million homes are the foreclosure process. 
Even the Treasury Department, long criticized for being soft servicers, will put place NPV test checks this year that will allow borrowers contest results. 
Bill Frey, president Greenwich Financial Services, acknowledged the same problems the Federal Housing Finance Agency did when the regulator set out change servicing fees January. 
"The misalignment economic interests between the owners mortgages and those who service them the single reason why the mortgage problem has become crisis and massive economicdrain this country," Frey said. 
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Freddie Mac tells servicers not foreclose MERS name 
March 24, 2011 Kerry Curry 
Freddie Mac told servicers managing its loans this week that they can longer foreclose the nameof Mortgage Electronic Registration Systems. 
The directive came bulletin issued Wednesday and takes effect April 
The bulletin from the government-sponsored enterprise also gives guidance several other areas.Servicers now may postpone foreclosure sales handled designated counsel long the newlyscheduled foreclosure sale date within Freddie Macs foreclosure timeline. The bulletin also advises changes requirements foreclosure and bankruptcy referrals, reimbursable expenses, andproperty preservation. 
"We have updated the guide eliminate the option for the foreclosure counsel trustee conduct aforeclosure the name MERS," the bulletin states. The directive effective for mortgages registered with MERS that are referred foreclosure after April Freddie Mac said. 
"Servicers must prepare assignment the security instrument from MERS the servicer and instruct the foreclosure counsel trustee foreclose the servicer's name and take title Freddie Mac's name," the bulletin says. 
"Servicers must record the prepared assignment where required state law. State mandatedrecording fees are not reimbursable Freddie Mac, are not considered part the Freddie Mac allowable attorney fees and must not billed the borrower," the GSE said. 
After June servicers must perform interior property inspection abandoned properties, per the bulletin. The inspection must occur upon confirmation the property has been abandoned; and within30 days prior scheduled foreclosure sale, Freddie said. 
Although the new interior property inspection requirements are not effective until June, servicers arebeing encouraged begin them soon possible. 
Click here read the entire bulletin. 
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Housing Wire 
Texas HOA bill prevent foreclosures active military passes Senate 
March 24, 2011 Kerry Curry Texas state bill aimed preventing homeowners associations from foreclosing active military personnel passed the Senate Thursday. 
S.B. 101, sponsored Sen. Leticia Van Putte (D-San Antonio), designed add protections tothe Service Member's Civil Relief Act, federal law that protects active military personnel fromforeclosure. identical companion bill the House, H.B. 1397, written Rep. Joe Farias (D-San Antonio), hasbeen referred the House Defense and Veterans Affairs Committee. 
Texas  and homeowners associations  got black eye last year when Dallas-area HOAforeclosed Mike Clauer while the Army National Guard captain was serving Iraq. The foreclosure 
 for $300,000 home that was fully paid for  was settle debt about $3,500 overdue HOAfees, according media reports the time. 
Clauer's wife learned the foreclosure after the home had already been sold the courthouse steps, according news reports. The couple eventually got the house back. 
The case spawned intense media scrutiny homeowners associations and the power they wield tolaunch foreclosure actions for unpaid dues. the case Clauer, the HOA didn't know Clauer was serving the military, according bill analysis the Senate Research Center. That communication breakdown resulted the home beingput into foreclosure, according the analysis. 
S.B. 101 amends two portions the state's property code require the servicer debt recognizemilitary service and comply with the federal SCRA. Also under the bill, notices HOA debts will nowhave carry statement that conspicuous, printed boldface underlined type" that notifies homeowners that active military (or their spouses) should send written notice the active service thedebt servicer immediately. passed both Houses, the law takes effect Sept. 
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CNNMoney 
Florida courts face $72.3 million deficit from foreclosure freeze 
March 23, 2011 Tami Luhby 
Florida desperately needs more foreclosures ... its court system does, least. 
The steep drop foreclosure filings recent months has opened $72.3 million deficit the Floridacourt system's budget. The financial situation dire that the chief justice has asked Gov. Rick Scott temporarily transfer $42.5 million the courts from other funds. 
Otherwise, the courts will have impose "extensive furloughs" its personnel, Chief Justice CharlesCanady wrote Scott last week. 
"Such furloughs would cause severe disruption the functioning the courts," said Canady, addingthat he's already implemented freeze hiring and operating budget expenditures, which will close the rest the gap. 
The governor's office agreed Tuesday transfer total $14 million from trust funds for mediation and arbitration and for court education. This will keep the courts operating through April. 
And will give Scott's team time understand what led the deficit and how can resolved, wrote Budget Director Jerry McDaniel Canady. They will then decide whether shift $28.5 million non-court funds the judicial system. 2009, Florida lawmakers changed the court system's funding system, making dependent filingfees rather than money from the state budget. Some 80% the court's $462 million budget comes fromfiling fees. 
And the courts, which have been swamped with foreclosure cases recent years, projected that 77%of their fees would come from real estate filings this year. 
But foreclosure cases have dropped precipitously since last fall, when mortgage servicers were caught paperwork scandal. Many halted slowed their foreclosure filings after came light that theywere submitting improper documents courts nationwide. Florida, foreclosure filings fell 8,205 February the lowest since October 2006. Filings peakedat 38,371 October 2008. 
The court system estimates that foreclosure filings will rebound the next fiscal year, which starts inJuly. While Canady says has some reservations about that projection, will resolve the judicialbranch's fiscal crunch. 
The chief justice said also working with state lawmakers lessen the court's reliance onforeclosure filing fees. 
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From: Blenkinsopp, Alexander (CFPB)  
To: _DL_CFPB_AllHands  
Cc: Adamske, Steven ; Moore, Megan; Hunt, AnitaMaria ; Wallace, Kim ; Wolin, Neal ; Warren, Elizabeth (CFPB); Fitzpayne,Alastair ; LeCompte, Jenni; Murray, Colleen  
Bcc: 
Subject: CFPB Press Clips 3/23 
Date: Wed Mar 2011 13:57:03 EDT 
Attachments: 
Press Clips 3/23/2011 
Index 
Click publication title find its location this e-mail. Click article title its source website. 
CFPB Speeches ICBA recklessly 
  Dow Jones Newswires  Warren: Most Consumer Bureau Budget Will Enforcement  
  Dow Jones Newswires  Federal Officials Seek Ease Community Bankers Angst  
  Reuters  Warren says consumer agency small banks side  
  Reuters  New city, tone U.S. regulators sell bank reforms  

  MarketWatch  Consumer advocate Warren reaches out bankers  
  San Diego Union-Tribune  Regulators pledge smarter, tougher bank rules  
  American Banker  After Cold Reception ABA, Bair Gets Heros Welcome ICBA  
  Wall Street Journal  Bair Defends Financial Overhaul  
  Housing Wire  FDICs Bair: Dodd-Frank will strengthen smaller banks  
  North County Times (California)  Legal overhaul help smaller institutions, regulators say  
  U.S. PIRG (blog)  Professor Warren reports from San Diego, meanwhile opponents spin  

Consumer Financial Protection Bureau  CNBC  Interview with Elizabeth Warren (no external hyperlink available)  Miami Herald  Right person for tough job  Seattle Times  Financial reform: free market not free lunch  The Nation (blog)  Putting Some Bite Behind Elizabeth Warren  Politico Playbook  First Look  Mother Jones  Karl Roves Audacious Transparency Hypocrisy  CBS News Political Hotsheet  GOP group crowdsources Obama administration info  Politico  Warren teams with the Chamber  CNBC  Consumer Bureau Most Constrained Agency: Warren  Bank Systems Technology  Whats Getting Consolidated under the CFPB?  Politico  Warren: I feel like Bob the Builder  Politico Morning Money  Shot: Warren CNBC; Chaser: GOP Fires Back  Philadelphia Daily News  Financial beat cop gets grilled, but Warren best for the job  Knoxville News Sentinel  Alexander: New rules help for recovery  American Banker  Regs May Force Issuers Rethink Payment Products  American Banker  Banks Are Not Like Utility Companies  Bloomberg  Michigan Ex-Governor Granholm Said Reject Consumer Bureau Job  Crooks and Liars  Elizabeth Warren More Effective The Outside, The Inside? Barney
Frank Pushing For Her Appointment Consumer Credit 
  American Banker  Startups Pair Groupon-Style Deals with Prepaid Cards  
  Wall Street Journal  Banks Hit for Credit Union Ills  
  Wall Street Journal  Bernanke: Dodd-Frank Hits Big Banks Harder  

Housing  American Banker  OneWest Exiting Reverse Mortgages  Credit Slips  Servicemen and Debt: Know Your Rights  Bloomberg  Foreclosure Terms May Pose Moral Hazard, State Attorneys General Say 
CNBC 
Interview with Elizabeth Warren 
March 22, 2011 Melissa Francis and Scott Wapner 
MELISSA FRANCIS, CNBC ANCHOR: Elizabeth Warren heading into the lions den. The specialadvisor the Consumer Financial Protection Agency addressing the largest gathering community bankers America today. 
Remember the group doesnt support the creation the consumer agency and didnt back passage the Wall Street Reform Act. 
Elizabeth Warren joins live from the meeting San Diego with "CNBC Exclusive." 
And the heels that introduction, let ask you, whats your reception been like far and whatcomments have you gotten from those community bankers that are there? 
ELIZABETH WARREN, CONSUMER FINANCIAL PROTECTION AGENCY: Yes. far, have say s been really nice reception. Ive been visiting with people the hallways and the elevators. But,remember, Ive now talked community bankers all states. Ive really reached out and had lotof long conversations with people from all around the country. you know, weve had weve already started good conversation. This not surprise. 
FRANCIS: What they say those conversations? Whats their biggest problem their biggestcomplaint the thing that they ask you for help with? 
WARREN: You know think there are two things that community bankers have really been focused on.One has been that they are very worried about regulatory burdens. They are very small financialinstitutions. When someone passes regulation Washington, you know, its something that the big financial institutions, the ones that can hire army lawyers, can deal with. 
But for community banks, the consequences trying comply can just crushing. Thats why are actually building into our first initiatives places where can cut down the regulatory burden andeven the playing field little bit between the big financial institutions and the small ones. 
Similarly, community banks are very worried about the competition they face from what are oftenunlicensed underlicensed financial services providers. You know mortgage brokers, payday lenders. And what they want see level playing field there. And thats what were doing the ConsumerAgency. are actually building police force that will have the same kind enforcements ofthe laws. 
SCOTT WAPNER, CNBC ANCHOR: Right. 
WARREN: For the nonbank lenders for the bank lenders. 
WAPNER: Miss Warren, the bureau goes live, you will, July. And still theres nobody picked head it. Would you accept recess nomination from the president? not, you think you would beconfirmed the Senate? 
WARREN: You know, want clear this. Theres process place that the president using totry figure out what head the new Consumer Agency. And weve done what can contribute that. But beyond that, thats thats his lane. spend hours day trying get the pieces this new consumer agency put together. You know feel like Bob the builder most the time. 
WAPNER: OK. understand. 
(CROSSTALK) 
WAPNER: But you want that job? you want the job? 
WARREN: The job want the job Im doing right now. And that putting this consumer agency together. 
FRANCIS: Lets bring Steve Liesman whos with here well. 
Steve, you have question? 
STEVE LIESMAN, CNBC SENIOR ECONOMICS REPORTER: Yes, Miss Warren, among the criticismsof the new agency from the Republicans that too powerful. The leader the agency toopowerful. 
Theres proposal the table make the leadership the new Consumer Finance Agency more like the SEC with board commissioners. How you react that proposal? 
WARREN: Well, want start with premise about whether not this agency too powerful. You know has all the same restrictions every other agency government. Its got bi-bodyadministrative procedures act and can overturned courts and Congress itself can overturn it. 
But this agency subject two other powerful restraints that other agency subject to. The firstone money that this agency, unlike the other banking regulators, does not set its own budget. Itsbudget set the Fed. 
And the second and the most surprising, from anywhere government, that this agency thatcan whatever decides can overturned group other agencies. You know have nothing like that anywhere government. other words, this the most constrained all the federal agencies. think can live with that. think weve got enough here get the job done that needs done.But the notion that somehow, youre speaking out behalf consumers, need beat you down little more, there need fewer you need have fewer powers just seems wrong me. 
LIESMAN: Ill take that you oppose the Republican suggestion. another front, another area criticism that you have overstepped your bounds joining with the states attorneys general widespread mortgage service agreement. And among those things it,was very vague agreement and that essentially youre trying advance social causes that agreement. 
How you respond that? 
WARREN: Well, you know, this one, just want clear. The secretary the treasury, theDepartment Justice and other federal agencies looked around, saw that had started hiring lot ofpeople who know awful lot about mortgages and how mortgage markets work. want clear. People from the industry, people who have studied from the academic world. Andthey asked for our assistanc