NOW WHILE SENATOR SANDERS SURGES, HE’S PUSHING THE PARTY
TO LEFT.
TO LEFT. SENATOR WARREN SAYING THEY SHARE
SIMILAR BELIEVES AND SHE IS THE
ONE WITH THE RESULTS.
>> BERNIE AND I BOTH WANTED TO
HELP REIGN IN WALL STREET.
IN 2008 WE BOTH GOT OUR CHANCE.
BUT I DUG IN.
I FOUGHT THE BIG BANKS, I BUILT
THE COALITIONS AND I WON.
>> AND THAT BRINGS US TONIGHT TO
A NEW INSTALLMENT IN BACK STORY,
OUR SPECIAL SERIES THAT GOES
DEEPER INTO CANDIDATE’S RECORDS.
OUR GOAL IS TO REPORT BEYOND THE
DAILY HEADLINES AND EXAMINE A
KEY BACK STORY.
SO, LET’S BE CLEAR THE CAUSE
THAT ANIMATED HER CAREER, SHAPED
HER POLITICAL EVOLUTION AND
DEFINES HERCOME CAMPAIGN FOR THI
DAY.
DAY. ADVOCATING FOR WORKING PEOPLE IN
LEGAL SYSTEMINIZES INCREASINGLY
STAFFED FOR BANKS.
MOST LAW PROFESSORS FOCUS ON
EXPLAINING HISTORY, RATHER THAN
MAKE HISTORY.
MAKE HISTORY. THEN HARVARD PROFESSOR WARREN
CONCLUDED THE FINANCIAL LAWS
WEREN’T REALLY NEUTRAL.
THEY DIDN’T SIMPLY PATROL THE
PLAYING FIELD LIKE A REFEREE,
THEY TILTED IT.
BUT ANY AMERICAN INDIVIDUAL
CONSUMER WOULD TEND TO BE OUT
MATCHED WILD LAY BY THE
ORGANIZED POWER OF WALL STREET.
OKAY.
OKAY. THAT’S A DIAGNOSES.
SOME WOULD DISAGREE AND A LOT
AGREE.
AGREE. WHAT DO YOU DO ABOUT IT?
WARREN VIEWS PROBLEMS AS AN
OPPORTUNITY.
OPPORTUNITY. >> THEY’RE READY FOR CHANGE AND
I GOT A PLAN FOR THAT.
>> IN FACT I GOT A LOT OF PLANS
AND YES, I GOT A PLAN FOR THAT.
>> BACK IN 2007, PROFESSOR
WARREN’S PLAN WAS TO CREATE
SOMETHING THAT COULD POOL THE
POWER OF CONSUMER WHOSE AREN’T
IN ANY WAY ORGANIZED OR UNITED
LIKE A BANKING INDUSTRY AND
PROTECT THEM.
PROTECT THEM. THE IDEA WAS PROTECT CITIZENS
AGAINST BANKS, THE SAME WAY
OTHER LAWS PROTECT AMERICAN’S
HEALTH AND SAFETY AGAINST A
PRODUCT THEY MAY FIND THEY CAN
SELL FOR A PROFIT BUT OTHERS
WITH TOO DANGEROUS WE WOULD WANT
IT SOLD IN THE FIRST PLACE.
CONSIDER THE TOASTER.
AT FIRST GLANCE SEEMS LIKE AN
INNOCUOUS HOUSEHOLD APPLIANCE
UNTIL.
UNTIL. >> YOU TOOK A VIDEO OF IT.
>> WHOA.
>> WHOA. >> IN THE WRONG CIRCUMSTANCES,
WHEN THERE ARE CERTAIN EX
EXTRA FACTORS, THE TOASTER CAN
TURN INTO A FIRE BALL.
>> THERE WE GO.
NOW SHE’S GOING.
>> THAT IS TOASTER ON FIRE.
>> JUST WHAT WE NEEDED.
>> FACT CHECK TRUE.
THAT IS TOASTER ON FIRE.
BURNING TOASTERS ARE DANGEROUS.
THAT PARTICULAR ONE WENT DOWN
OUTSIDE.
OUTSIDE. BUT A REALLY CHEAP TOASTER CAN
BE MORE PROFITABLE TO SELL THAN
A MORE EXPENSIVE SAFE ONE.
THE FACT IT’S UNSAFE MAKES IT
MORE COSTLY FOR EVERYONE WHEN
CAN T CATCHES ON FIRE.
THAT BASIC, CALL IT FLAMING
POINT, IS EXACTLY THE POINT
ELIZABETH WARREN MADE, WRIETDING
FEDERAL LAW MAKES IT IMPOSSIBLE
TO BUY A TOESZER WITH A 20 PERP
CHANCE OF BURSTING INTO FLAMES
AND BURNING DOWN YOUR HOUSE.
BUT THE LAW DOES ALLOW BANKS TO
SELL MORTGAGE PLANS WITH THE
SAME 20% CHANCE OF PURTINGTTING
FAMILY ON THE STREET.
QUOTE, THE DIFFERENCE BETWEEN
THOSE TWO MARKETS IS REGULATION.
AND THAT’S HOW SHE EXPLAINED HER
IDEA IN THE ARTICLE IN 2007.
CHECK THE INCENTIVES FOR BANKS
TO SEEK PROFITS WHEN THEY FORCE
LARGER COSTS OR BANKRUPTCY ON
YOU AND THAT RANGE SAIDS FROM AR
LIKE TOASTERS, SURE, TO
MORTGAGES, STUDENT LOANS AND
CREDIT CARDS.
CREDIT CARDS. THAT WAS 2007.
BUSH WAS PRESIDENT, ALLEN
GREENSPAN FINISHED A RECORD YEAR
TO BIPARTISAN ACCLAIM.
FEW WERE TALKING ABOUT GETTING
TOUGHER ON THE BANKS OR EYEING
THE POTENTIAL RISK OF COMP LKTED
INSTRUMENTS THE BANK SAID MADE
EVERYBODY RICHER, UNTIL THINGS
CHANGED.
CHANGED. >> MELTDOWN.
>> MELTDOWN. THE AMERICAN FINANCIAL SYSTEM IS
ROCKED TO ITS FOUNDATION.
>> SHARE PRICES CONTINUE TO
TUMBLE.
TUMBLE. >> STOCK MARKETS CRASH.
>> BANKRUPTCIES.
>> BANKRUPTCIES. >> FORCLOSURE.
>> FORCLOSURE. >> AND THE GOVERNMENT BAILS.
>> EVERYTHING CHANGED LIKE THAT.
CONGRESS BEGAN THAT
CONTROVERSIAL BAILOUT OF BANKS
WHO TOOK THE RISKS THAT GOT
AMERICANS INTO THE MESS.
THEY MIGHT CALL THE RISKY
TOASTER BAILOUT.
TOASTER BAILOUT. SOME SAW HER AS THE VOICE OF
REASON.
REASON. HARRY REED PUTTING HER ON THE
PANEL TO OVER SEA THE BAILOUT.
AND HER WORK STARTED TO DRAW
WIDER NOTICE.
WIDER NOTICE. >> THE BANKS THINK THEY’VE DONE
ANYTHING WRONG?
ANYTHING WRONG? >> YOU SHOULD ASK THE BANKS.
>> I THINK I KNOW WHAT THE BANKS
WOULD SAY TO ME.
>> WARREN SEIZING THE MOMENT TO
GO WELL BEYOND HARVARD AND
PUBLICLY ADVOCATE HER IDEAS.
>> IT’S GOING TO GO ONE WAY OR
THE OTHER.
THE OTHER. WE’RE GOING TO DECIDE WE DON’T
NEED REGULATION.
NEED REGULATION. IT’S FINE.
IT’S FINE. BOOM AND BUST, BOOM AND BUST AND
GOOD LUCK WITH YOUR 401(k).
OR WE’RE GOING TO SAY WE’RE
GOING TO PUT IN SMART REGULATION
THAT’S GOING TO ADAPT TO THE
FACT THAT WE HAVE NEW PRODUCTS
AND WE’RE GOING TO HAVE
STABILITY AND SOME REAL
PROSPERITY FOR ORDINARY FOLKS.
>> AND THAT’S SOCIALISM.
>> THERE’S THAT WORD SOCIALISM.
CONGRESS DIDN’T TACK LOGICAL THE
REFORMERS AND FEW WERE FINED.
FOR THE FINANCIAL ACTS THAT
CAUSED FAR MORE DAMAGE THAN
INDIVIDUAL OFFENSES IN TAXES OR
BANKRUPTCY, WHICH INDIVIDUAL
CITIZENS SOMETIMES HAVE THEIR
LIVES RUINED.
LIVES RUINED. BUT CONGRESS DID PASS A WALL
STREET BILL AND IN THOUSANDS
OPITCHES, IT’S REMARKABLE TO
REMEMBER WARREN’S PLAN BECAME
LAW, CREATING THE CONSUMER
FINANCIAL PROTECTION BUREAU.
AND THEY THOUGHT WHY NOT TAP THE
PURSES WHOON
PURSES WHOON PERSON WHO KICKED THE IDEA OFF.
>> I HAVE KNOWN ELIZ BGTDABETH S
LAW SCHOOL.
LAW SCHOOL. SHE’S A JANITOR’S DAUGHTER WHO
HAS BECOME ONE OF THE FIERCEST
ADVOCATES FOR THE MIDDLE CLASS.
AND THREE YEARS AGO SHE CAME
WITH AN GRD A NEW INDEPENDENT
AGENCY THAT WOULD HAVE ONE
SIMPLE OVERRIDING MISSION,
STANDING UP FOR CONSUMERS AND
MIDDLE CLASS FAMILIES.
>> EVEN AFTER THE CRASH AND A
WALL STREET BAILOUT, MITCH
McCONNELL LED SENATE REPUBLICANS
TO TRY AND BLOCK WARREN AND
OBSTRUCT THE LAWFUL AGENCY FROM
DOING ITS WORK.
LOOKING BACK ON IT NOW T,IT LOOK
LIKE A REPUBLICAN BANKER’S DREAM
IDEA OF MERRICK GARLANDING
OBAMA’S WALL STREET AGENDA.
VOWING POLITICAL EXTORTION AND
THREATENING TO EXPOSE ANY
DIRECTOR UNLESS IT WAS GUTTED
AND ALONG THE WAY SLAMMING
WARREN.
WARREN. >> WE’RE PRETTY UNENTHUSIASTIC
ABOUT THE IDEA OF ELIZABETH
WARREN AND FRANKLY ABOUT THIS
NEW AGENCY.
NEW AGENCY. >> THE WHITE HOUSE TASKED WARREN
ON LAUNCHING THE AGENCY WITHOUT
NAMING HER.
NAMING HER. A WAY TO SIDE STEP THAT
REPUBLICAN VOW TO BLOCK HER.
>> FIRST QUESTION IS WHY NOT
TAKE THAT FIGHT TO THE FLOOR OF
THE SENATE?
THE SENATE? >> WELL, YOU KNOW, I HAVE TO SAY
I’VE NEVER WALKED AWAY FROM A
FIGHT IN MY LIFE.
YOU CAN ASK MY THREE OLDER
BROTHERS ABOUT THAT.
BUT THE POINT IS THE TIME SPENT
FIGHTING IS THE TIME NOT SPENT
DOING THE ACTUAL WORK OF THIS
AGENCY.
AGENCY. >> WARREN DID SOME OF THE WORK
OF GETTING THE AGENCY STARTED
AND OBAMA NOMINATED HER DEPUTY
AS THE FIRST OFFICIAL DIRECTOR
AND THEY WENT ON TO CONFRONT THE
FINANCIAL INTERESTS, ALONG WITH
CRACKING DOWN ON PAY DAY LENDERS
WHO PRAY ON LOW INCOME WORKERS
WITH THEIR OWN BRAND OF BURNING
TOASTER SHORT-TERM LOANS.
FORCING DEBT COLLECTORS TO
CHANGE THE WAY THEY DO BUSINESS
AND THE AGENCY TURNED SOME OF IT
AROUND.
AROUND. FINED WELLS FARGO $100 MILLION
FOR MISS LEADING PEOPLE.
MUCH OF THE MONEY WENT BACK TO
CONSUMERS, BACK TO YOU.
BUT ON THE OTHER HAND, THE
AGENCY’S WORK WAS CRITICIZED BY
EVEN SOME OF WARREN’S OWN
ECONOMIC PROGRESSIVES FOR
FAILING TO DO ENOUGH TO PROTECT
STUDENTS FROM PREDATORY LOANS.
AND THERE ARE OTHER CONSERVATIVE
ECONOMIST WHOSE ARGUE THE AGENCY
STILL DOESN’T HAVE ENOUGH
OVERSIGHT, WHICH MAKES IT A
SEPARATE NEW PROBLEM POTENTIALLY
HURTING BUSINESS GROWTH BY
LAUNCHING INVESTIGATIONS WITHOUT
CAUSE, IMPOSING FINES WITHOUT
REMEDY.
REMEDY. THEY’RE ARGUING AS THETHERE’S NO
ENOUGH DUE PROCESS.
UNDER THE TRUMP ADMINISTRATION
THERE ARE EFFORTS TO UNDERCUT
THE AGENCY’S ENTIRE AGENDA OF
HOLDING WALL STREET ACCOUNTABLE.
THERE’S A FIGHT OVER THE VERY
LEADERSHIP BEFORE THE SUPREME
COURT.
COURT. AS FOR WARREN, IT’S STRIKING TO
OBSERVE MITCH McCONNELL’S
OBSTRUCTION OF HER IN PARTICULAR
BACKFIRED ON HIM POLITICALLY.
REMEMBER, HAD SHE BEEN
CONFIRMED, SHE WOULD HAVE BEEN
REALLY BUSY WITH HER NEW OBAMA
ADMINISTRATION DREAM JOB BUT
BLOCKED FROM THE LONG-TERM
APPOINTMENT BY MITCH McCONNELL,
SHE WAS FREE TO ENTERTAIN OTHER
IDEAS.
IDEAS. >> ELIZABETH WARREN, THE VERY,
VERY POPULAR CONSUMER ADVOCATE,
CURRENTLY A KEY ADVISOR AND A
HIGH-PROFILE ADVISOR IN THE
OBAMA ADMINISTRATION.
OBAMA ADMINISTRATION. THEY’RE REPORTEDLY WOOG
ELIZABETH WARN TO RUN AGAINST
SCOTT BROWN FOR SENATE IN 2012.
>> SENATOR SCOTT BROWN WAS A
BLUE STATE REPUBLICAN.
SHE DIDN’T CHANGE HER MESSAGE
ABOUT CONSUMER PROTECTION, SHE
BASICALLY UNLEASHED IT IN A NEW
VENUE.
VENUE. >> THERE IS NOBODY IN THIS
COUNTRY WHO GOT RICH ON HIS OWN.
NOBODY.
NOBODY. YOU BUILT A FACTORY OUT THERE.
GOOD FOR YOU.
YOU MOVED YOUR GOODS TO MARKET
ON THE ROADS THE REST OF US PAID
FOR.
FOR. YOU BUILT A FACTORY AND IT
TURNED INTO SOMETHING TERRIFIC
OR A GREAT IDEA.
GOD BLESS.
GOD BLESS. KEEP A BIG HUNK OF IT.
BUT PART OF THE UNDERLYING
SOCIAL CONTRACT IS YOU TAKE A
HUNK OF THAT AND PAY FORWARD FOR
THE NEXT KID WHO COMES ALONG.
>> WARREN WON THAT RACE, CUTTING
DOWN McCONNELL’S MAJORITY BY AT
LEAST ONE VOTE AND SOON AT WORK
CONFRONTING SOME OF TH LEADERS H
BATTLING.
BATTLING. >> SO, YOU HAVEN’T RESIGNED, YOU
HAVEN’T RETURNED A SINGLE NICKEL
OF YOUR PERSONAL EARNINGS,
YOUVENT FIRED A SINGLE SENIOR
EXECUTIVE.
EXECUTIVE. APPARENTLY YOUR DEFINITION OF
ACCOUNTABLE IS TO PUSHES IT TO
YOUR LOW LEVEL EMPLOYEES WHO
DON’T HAVE THE MONEY FOR A FANCY
P.R. FIRM TO DEFEND THEMSELVES.
IT’S GUTLESS LEADERSHIP.
>> WAR PCHBSREN’S PLAN TO PROTEL
THEM FROM BANKS AND DESIGNED TO
PUT THEM IN DEBT FROM RISKY
MORTGAGES IS THE FOUNDATION OF
EVERYTHING SHE’S BEEN DOING IN
POLICY AND POLITICS SINCE.
SO, AS WE DO IN THE SERIES, IT’S
INTERESTING TO NOTE WHATEVER
HAPPENS IN EARLY STATES AND MORE
STATES ON SUPER TUESDAY, PART OF
DEMOCRACY HAS ALWAYS AN IDEAS
PRIMARY.
PRIMARY. IT’S NOTE LKABLE SO MANY OF THE
THINGS THEY’RE PUSHING FOR ARE
NOT ONLY LAW BUT THEY’RE GETTING
MORE ATTENTION FROM MORE PEOPLE
IN THE DEMOCRATIC PRIMARY AND