Harvard professor Elizabeth Warren, who was instrumental in the creation of the Consumer Financial Protection Bureau (CFPB) was passed over for an appointment as the head of the newly created agency. This is sure to be stinging blow to liberals, many of whom saw Warren as a beacon of light for financial reforms that have largely fallen to the back-burner.
In short, the agency helps people better understand the agreements they sign so they can no longer be sold faulty mortgages or other duplicitous packages. It will be headed by former Ohio attorney general Richard Cordray, as appointed by President Obama.
That frees Warren up for any other political ambitions and many speculate that she may decide to run against Senator Scott Brown in the 2012 race. While a number of Democrats have already started swinging against Brown, support has been tepid at best and there are clashes within the party over who would be best to run.
City Year co-founder Alan Khazei is the strongest lead for the Democrats currently, having raised $930,000 in the past three months. While the sum may seem sizable, it pales in comparison to Brown's spending power – he has raised $2.6 million and has $9.6 million in the bank, according to The Boston Globe.
Some speculate that Warren was passed over as part of a broader strategy, because she could prove to be a viable candidate against Brown. Warren herself seemed doubtful that she would ever officially get the position.
"In May, 44 Republican senators wrote a letter saying that they will block anyone from serving as CFPB Director. Many of them don't like either the agency or the ideas that led to its creation," she said previously. "They lost that fight last summer in a straight up vote, but they have said they will use a filibuster over nomination to undercut the agency and its effectiveness."