Many, if not most, underwater homeowners have been directly or indirectly victimized by bank predation. But the administration's senior economic officials have shown a disturbing tendency to treat them as if they were morally tainted and unworthy of support. At the same time, the administration has seeded top posts with executives from wrongdoing banks and has given Wall Street bankers a pass for widespread criminal fraud.
The president and his party have better rhetoric than their opponents on the subjects of bank fraud, consumer protection and a growth-oriented economy. At times they've passed good laws, too. But their appointments have often stood in marked contrast to their rhetoric. As Warren pointed out in an earlier editorial, both the Clinton and Obama administrations have been dominated by a "Citigroup clique" of bankers whose institution wouldn't even exist in its present form had it not been for the assistance of President Bill Clinton economic team (some of whom later enriched themselves working at that institution).
As Warren wrote, "there is danger anytime the key economic positions in our government fall under the control of a single tight-knit group. Old ideas can stay around long after they're useful, and new ideas don't get a fair hearing."
That's a good principle, and it's one that seems especially true of this set of individuals.
Perhaps the White House thought it was branching out by choosing an appointee from a new big bank, rather than continuing to draw solely on Citigroup. But that's not the point. Antonio Weiss reflects a set of practices and values that diverges substantially from the values and policies our economy needs.
Mel Watt didn't come from the banking industry at all, but was a member of Congress. A couple of years ago we were told that a Bush holdover was standing in the way of mortgage principal reductions, a form of relief that homeowners need and deserve -- but President Obama's appointee has the job now, and so far nothing's changed.
Presidential appointees are thoroughly screened and vetted. They reflect the policies, priorities and preferences of the president who makes them -- and, typically, of the party he represents. Once in office, appointees like these have reinforced the insular and self-interested perspectives that created our economic problems in the first place. It is a vicious cycle.
If we are going to have a better economy, those policies and priorities -- as well as the kinds of appointees who determine them -- must change. It is the president's responsibility to lead that process of change, by laying out new goals and ending the epidemic of Wall Street executives that has blighted our economic policymaking machine. (Warren, to her everlasting credit, has characterized it more boldly as an "infestation.")
It's not surprising that Elizabeth Warren is fed up. The surprise is that more people aren't. As the senator said: Enough is enough.
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