Warren Increases the Pain Factor for Choosing Corporate-Friendly Democrat

http://readersupportednews.org/news-section2/318-66/32311-warren-increases-the-pain-factor-for-choosing-corporate-friendly-democrats

Led by Warren, reformers previously prevented Larry Summers from becoming Federal Reserve chair, and forced Antonio Weiss to withdraw from a nomination for the No. 3 position at the Treasury Department.

The Obama administration, despite a clear preference for moderates with Wall Street ties for financial regulatory positions, now must consider a far broader range of personnel. Warren and company have prioritized this, believing that personnel affects policy when regulators must implement and enforce laws, or exercise independent judgment. Reducing Wall Street’s influence inside those agencies will have a salutary effect on outcomes.

That explains the reform wing’s satisfaction with forcing Hillary Clinton to take their side on anti-revolving door legislation last week. Her Democratic opponent Bernie Sanders would be reliably expected to hire reform-minded regulators for his White House staff, should he get the chance. Influencing those who may not always share those principles, like Clinton or Obama, suggests far more clout.

By forming a united front on these matters, it makes it more difficult for future Democratic administrations to use Wall Street as a policymaker talent pool. This significantly changes the landscape of the party, regardless of individual candidate views or the desires of Wall Street-aligned donors.

Obama may still pick Gumbs; he reportedly has the backing of Holder, his colleague at Covington & Burling. Gumbs and Warren are set to meet this week, according to the Wall Street Journal. But the interest in Fairfax reflects the fact that she’s more confirmable for Senate Democrats.