Warren Possible Recruit for Senate Banking Committee

One of the financial sector’s toughest critics is poised to serve on the Senate Banking Committee.

Two Democratic Senate aides, speaking anonymously as there has been no formal assignment, said Senator-elect Elizabeth Warren (D-Mass.) will likely join Sen. Joe Manchin (D-W. Va.) on the committee in the next Congress. The decision awaits final approval from Senate Majority Leader Harry Reid (D-Nev.).

Pending Reid’s approval, which should come prior to the next session, Warren will be tapped for a primary role in overseeing the financial firms that have been at odds with her for several years over consumer protections and regulations.

Before her senatorial win last month, Warren, a Harvard law professor who will be Massachusetts’ first woman senator, went to Washington to head the government’s official bailout watchdog, and served as the chief advocate of the Consumer Financial Protection Bureau. At the CFPB, she clashed with congressional Republicans until August 2011, when President Barack Obama appointed Richard Cordray director. The CFPB was formed by the Dodd-Frank financial reform law.

Warren and Manchin would replace two definite retiring committee seats, but more spots could become available if other members decide to shift to other panels. Sen. Chris Coons (D-Del.) has also expressed interest in sitting on the Banking Committee.

There have been reports of the banking industry vehemently opposing Warren’s taking a seat on the committee, but that perception was articulately shot down by Consumer Bankers Association Chief Executive Richard Hunt.

“It’s total BS, whoever is saying that,” he said. “I, for one, would welcome her on the Senate Banking Committee. I welcome her to be inside the tent rather than outside the tent, throwing bombs.”