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OnDaley'sinvolvementinCFPBmatters:Mr. Daleywillcomplywithallapplicableethicsrulesandwillrecusehimselffromparticularmattersanddiscussionsinvolvinghisformeremployer,JPMorgan. AsChiefofStaff,Mr.DaleymaybeinvolvedinmattersinvolvingtheCFPBandisnotrecusedfromthosematters. However,Mr.DaleyhaschosennottoparticipateintheprocessofselectinganomineeforCFPBdirector. PeteRousewillbethestaffleadinthatprocess.Onyourotherquestions:ThePresidentisconsideringanumberofcandidatesforthepositionofDirectorandwillnominatesomeoneassoonaspossible,butwearenotgoingtogetaheadofthePresidentsprocessbycommentingonwhetherspecificindividualsareunderconsiderationforthisrole. ThePresidentfoughtforaWallStreetReformandConsumerProtectionActthatincludesthestrongestconsumerprotectionsinhistoryandestablishesoneagencywhosesolemissionisprotectingAmericanconsumers. Overthepastsixmonths,ElizabethWarrenandherteamhavebeenextraordinarilyeffectiveatstandingupthatagency,reachingouttostakeholdersandthepublicforinputonhowtheofficeshouldwork,establishingtheOfficeofServicemembersAffairsledbyHollyPetraeus,andputtingothernecessarypiecesinplacesotheagencycanachieveitsmission.From the post:

Hi,Amy,

Ihopeyou'rewell.BradyDennisandIaregoingtoattempttodoadailystoryontheCFPBandI

wantedtorunafewquestionsbyyou.

1.WeunderstandthatBillDaleyhasrecusedhimselffromtheprocesstosearchforapermanent

CFPBdirectorbecauseJ.P.MorganhadopposedtheCFPBandhehadspokenonthebank'sbehalf.Is

ittruethathe'srecusedhimself?Ifso,why?Ifnot,whynot?

2.DoestheWHintendtonominateadirectorbythestartdateinJuly?

3.Canyougiveanyindicationofwhytheprocessistakingaslongasitis?Formonths,

prominentconsumergroupshavebeencallingontheadministrationtonominateadirector.

4.AreyouconcernedthattheSenateisunlikelytoconfirmanynominee includingtherecent

FHFAnominee,whohadwidespreadsupport andisthisplayinganyroleinthethinkingaboutthe

CFPBdirector?

5.Wouldyouconsiderarecessappointmentorareyoucommittedtosubmittinganametothe

Senate?

Thanksmuch,

Zach

ZacharyGoldfarb

Staffwriter,TheWashingtonPost

Tel:2023346242

Cell:

E

mail:

[email protected]

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From: Rose, LaceyDisabled

To: Anderson, Matthew; Paustenbach, MarkDisabled; Earnest, Natalie W ;Adams, MartiDisabled; Salstrom, Sandra; Murray, ColleenDisabled; Gudmundson, ErikaDisabled;Anderson, Charlie; Jackson, Peter (CFPB); Howard,Jennifer (CFPB); Trebat, GabrielleDisabled; Suarez-Palomo, Victoria; Risotto, Andrea

Cc: Buford, Molly;Adamske, StevenDisabled

Subject: weekly

Date: Wednesday, February 02, 2011 12:52:47 PM

Please send me your weeklies by 4:30 pm today. Below is last week s look ahead and the PA calendar for the next couple of weeks. Please make sure to edit and add to your look

back in addition to sending me a look ahead.

Thanks-

Week of January 31 Preview:

CFPB: On Monday, Prof Warren will do an interview with David Lazarus of the Los Angeles Times on her vision and priorities for the CFPB and with CarterDougherty of Bloomberg on the implementation teams outreach efforts She will also drop by the Huffington Post for an off the record briefing and sit for a short,videotaped interview On Thursday, Holly Petraeus will do an interview with Pamela Yip, the personal finance columnist for the Dallas Morning News

Sunday Monday Tuesday Wednesday Thursday Friday Saturday

NR

NR

NR

NR


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2

--Will her office be in Treasury, WH, new consumer headquarters, or someplace else?

--I know the appointment takes effect immediately, but how soon is she expected to start? Immediately?

Thanks!

--Brady Dennis

The Washington [email protected](b) (6)


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3

>>>>EdWyatt/SewellChan(NewYorkTimes)>>>>TomBraithwaite(FinancialTimes)>>>>CarenBohan/DaveLawder(Reuters)>>>>RyanGrim/ShahienNasiripour(HuffingtonPost)>>>


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3

>>>>BradyDennis(WashingtonPost)>>>>DamianPaletta(WallStreetJournal)>>>>DanWagner(AssociatedPress)>>>>LorraineWoellert(Bloomberg)>>>>MichaelKranish(BostonGlobe)>>>>EdWyatt/SewellChan(NewYorkTimes)>>>>TomBraithwaite(FinancialTimes)>>>>CarenBohan/DaveLawder(Reuters)>>>>RyanGrim/ShahienNasiripour(HuffingtonPost)>>>


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From: Wolin, Neal

To: Adamske, StevenDisabled; Patterson, Mark (DO); Goldstein, JeffreyDisabled; Fitzpayne, Alastair; Siewert,JakeDisabled

Cc: LeCompte, Jenni

Subject: Re: Wash Post inquiry re: CFPB director

Date: Wednesday, March 23, 2011 5:34:31 PM

On CoS issues, we don't have a role. I think their responses on other issues are fine.

From: Adamske, StevenTo: Patterson, Mark (DO); Goldstein, Jeffrey; Wolin, Neal; Fitzpayne, Alastair; Siewert, JakeCc: LeCompte, JenniSent: Wed Mar 23 17:30:49 2011Subject: Wash Post inquiry re: CFPB director

FYI,The Washington Post has inquired to the White House about the process for selecting a director ofthe CFPB. Note: the Washington Post did not call us about this. The White House has developed

the following response.I think their response is fine. Let me know if you have any comments.

Steven Adamske

Deputy Assistant Secretary

Office of Public Affairs

202.622.0501 (direct)

202.550.3379 (mobile)

202.622.2920 (office)

[email protected]

From: Brundage, AmySent: Wednesday, March 23, 2011 5:22 PMTo: Adamske, StevenSubject: What i am sending

On Daley's involvement in CFPB matters: Mr. Daley will comply with all applicable ethics rules

and will recuse himself from particular matters and discussions involving his former employer, JP

Morgan. As Chief of Staff, Mr. Daley may be involved in matters involving the CFPB and is not

recused from those matters. However, Mr. Daley has chosen not to participate in the process of

selecting a nominee for CFPB director. Pete Rouse will be the staff lead in that process.

On your other questions: The President is considering a number of candidates for the position of

Director and will nominate someone as soon as possible, but we are not going to get ahead of the

Presidents process by commenting on whether specific individuals are under consideration for this

role. The President fought for a Wall Street Reform and Consumer Protection Act that includes the

strongest consumer protections in history and establishes one agency whose sole mission is

protecting American consumers. Over the past six months, Elizabeth Warren and her team have

Amy Brundage


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been extraordinarily effective at standing up that agency, reaching out to stakeholders and the

public for input on how the office should work, establishing the Office of Servicemembers Affairs

led by Holly Petraeus, and putting other necessary pieces in place so the agency can achieve its

mission.

From the post:

Hi, Amy,

I hope you're well. Brady Dennis and I are going to attempt to do a daily story on

the CFPB and I wanted to run a few questions by you.

1. We understand that Bill Daley has recused himself from the process to search for

a permanent CFPB director because J.P. Morgan had opposed the CFPB and he had spoken

on the bank's behalf. Is it true that he's recused himself? If so, why? If not, why

not?

2. Does the WH intend to nominate a director by the start-date in July?

3. Can you give any indication of why the process is taking as long as it is? For

months, prominent consumer groups have been calling on the administration to

nominate a director.

4. Are you concerned that the Senate is unlikely to confirm any nominee --

including the recent FHFA nominee, who had widespread support -- and is this playing

any role in the thinking about the CFPB director?

5. Would you consider a recess appointment or are you committed to submitting a name

to the Senate?

Thanks much,

Zach

--

Zachary Goldfarb

Staff writer, The Washington Post

Tel: 202-334-6242

Cell:

E-mail: [email protected]

(b) (6)


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From: Patterson, Mark (DO)

To: Wolin, Neal;Adamske, StevenDisabled; Goldstein, JeffreyDisabled; Fitzpayne, Alastair; Siewert, JakeDisabled

Cc: LeCompte, Jenni

Subject: RE: Wash Post inquiry re: CFPB director


Agree - thanks

From: Wolin, NealSent: Wednesday, March 23, 2011 5:35 PMTo: Adamske, Steven; Patterson, Mark (DO); Goldstein, Jeffrey; Fitzpayne, Alastair; Siewert, JakeCc: LeCompte, JenniSubject: Re: Wash Post inquiry re: CFPB director

On CoS issues, we don't have a role. I think their responses on other issues are fine.

From: Adamske, StevenTo: Patterson, Mark (DO); Goldstein, Jeffrey; Wolin, Neal; Fitzpayne, Alastair; Siewert, Jake

Cc: LeCompte, JenniSent: Wed Mar 23 17:30:49 2011Subject: Wash Post inquiry re: CFPB director

FYI,The Washington Post has inquired to the White House about the process for selecting a director ofthe CFPB. Note: the Washington Post did not call us about this. The White House has developedthe following response.I think their response is fine. Let me know if you have any comments.

Steven Adamske



202.622.0501 (direct)

(mobile)

202.622.2920 (office)

[email protected]

From: Brundage, AmySent: Wednesday, March 23, 2011 5:22 PMTo: Adamske, StevenSubject: What i am sending

On Daley's involvement in CFPB matters: Mr. Daley will comply with all applicable ethics rules

and will recuse himself from particular matters and discussions involving his former employer, JP

Morgan. As Chief of Staff, Mr. Daley may be involved in matters involving the CFPB and is not

recused from those matters. However, Mr. Daley has chosen not to participate in the process of

selecting a nominee for CFPB director. Pete Rouse will be the staff lead in that process.

(b) (6)

Amy Brundage


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On your other questions: The President is considering a number of candidates for the position of

Director and will nominate someone as soon as possible, but we are not going to get ahead of the

Presidents process by commenting on whether specific individuals are under consideration for this

role. The President fought for a Wall Street Reform and Consumer Protection Act that includes the

strongest consumer protections in history and establishes one agency whose sole mission is

protecting American consumers. Over the past six months, Elizabeth Warren and her team have

been extraordinarily effective at standing up that agency, reaching out to stakeholders and thepublic for input on how the office should work, establishing the Office of Servicemembers Affairs

led by Holly Petraeus, and putting other necessary pieces in place so the agency can achieve its

mission.

From the post:Hi, Amy,

I hope you're well. Brady Dennis and I are going to attempt to do a daily story on

the CFPB and I wanted to run a few questions by you.

1. We understand that Bill Daley has recused himself from the process to search for

a permanent CFPB director because J.P. Morgan had opposed the CFPB and he had spoken

on the bank's behalf. Is it true that he's recused himself? If so, why? If not, why

not?

2. Does the WH intend to nominate a director by the start-date in July?

3. Can you give any indication of why the process is taking as long as it is? For

months, prominent consumer groups have been calling on the administration to

nominate a director.

4. Are you concerned that the Senate is unlikely to confirm any nominee --including the recent FHFA nominee, who had widespread support -- and is this playing

any role in the thinking about the CFPB director?

5. Would you consider a recess appointment or are you committed to submitting a name

to the Senate?

Thanks much,

Zach

--

Zachary GoldfarbStaff writer, The Washington Post

Tel: 202-334-6242

Cell:

E-mail: [email protected]

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From: Jackson-Randall, Maya

To: Murray, ColleenDisabled

Subject: Re: cfpb documents

Date: Thursday, July 07, 2011 7:55:48 PM

Hey Colleen, no not yet. I thought it would be best to get it straight from Treasury -- the primary

source -- instead of second-hand from the lawmakers. That way there's no confusion about whatTreasury turned over. I'd prefer to get them directly from Treasury. Can you provide them?--------------------------Maya Jackson RandallFinancial ReporterDow Jones NewswiresWashington Bureau202-862-6687 (work)

Sent from my BlackBerry Wireless Handheld

----- Original Message -----

From: [email protected] To: Jackson-Randall, MayaSent: Thu Jul 07 19:50:15 2011Subject: RE: cfpb documents

Hi Maya. Have you asked the lawmaker's offices for them?

-----Original Message-----From: Jackson-Randall, Maya [mailto:[email protected]]Sent: Thursday, July 07, 2011 5:16 PMTo: Murray, ColleenSubject: cfpb documents

Hi Colleen, I'm interested in taking a look at the documents Treasury sent lawmakers on behalf of theCFPB regarding the bureau's involvement in mortgage servicing negotiations. I hear that Treasury sentthe documents to House lawmakers on Tuesday - are they in email format? Or can I pick up copiesfrom you? Let me know the best way I can get a hold of them.

Best,Maya

Maya Jackson RandallFinancial Reporter,Dow Jones Newswires/Wall Street Journal BureauWashington, D.C.Office: 202-862-6687

(b) (6)

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From: Weideman, Christian

To: Murray, ColleenDisabled; Fitzpayne, Alastair;Adeyemo, Adewale (Wally); Howard, Jennifer (CFPB); Mellody,Kathleen

Cc: Gordon, Michael (CFPB)

Subject: RE: cfpb documents


-----Original Message-----From: Murray, ColleenSent: Thursday, July 07, 2011 5:23 PMTo: Fitzpayne, Alastair; Adeyemo, Adewale (Wally) (CFPB); Howard, Jennifer (CFPB); Weideman,Christian; Mellody, Kathleen; Meade, ChristopherSubject: FW: cfpb documents

Not sure what protocol is here...



Best,Maya

Maya Jackson RandallFinancial Reporter,Dow Jones Newswires/Wall Street Journal BureauWashington, D.C.

Office: 202-862-6687(b) (6)

(b) (5)


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From: Howard, Jennifer (CFPB)

To: Fitzpayne, Alastair; Weideman, Christian; Murray, ColleenDisabled;Adeyemo, Adewale (Wally); Mellody,Kathleen; Gordon, Michael (CFPB)




Looping in Mike Gordon, from our OGC

Jen HowardSenior SpokespersonConsumer Financial Protection BureauE: [email protected]: 202-435-7454

-----Original Message-----From: Fitzpayne, AlastairSent: Thursday, July 07, 2011 6:55 PM

To: Weideman, Christian; Murray, Colleen; Adeyemo, Adewale (Wally) (CFPB); Howard, Jennifer (CFPB);Mellody, KathleenCc: Gordon, Michael (CFPB)Subject: RE: cfpb documents

--

Alastair FitzpayneDeputy Chief of Staff and Executive SecretaryDepartment of the Treasury202 622 5780 direct

-----Original Message-----From: Weideman, ChristianSent: Thursday, July 07, 2011 6:49 PMTo: Murray, Colleen; Fitzpayne, Alastair; Adeyemo, Adewale (Wally) (CFPB); Howard, Jennifer (CFPB);Mellody, KathleenCc: Gordon, Michael (CFPB)Subject: RE: cfpb documents

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Best,Maya

Maya Jackson RandallFinancial Reporter,Dow Jones Newswires/Wall Street Journal BureauWashington, D.C.Office: 202-862-6687(b) (6)


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From: Fitzpayne, Alastair

To: Weideman, Christian; Murray, ColleenDisabled;Adeyemo, Adewale (Wally); Howard, Jennifer (CFPB); Mellody,Kathleen




--

Alastair FitzpayneDeputy Chief of Staff and Executive SecretaryDepartment of the Treasury202 622 5780 direct

-----Original Message-----

From: Weideman, ChristianSent: Thursday, July 07, 2011 6:49 PMTo: Murray, Colleen; Fitzpayne, Alastair; Adeyemo, Adewale (Wally) (CFPB); Howard, Jennifer (CFPB);Mellody, KathleenCc: Gordon, Michael (CFPB)Subject: RE: cfpb documents




Hi Colleen, I'm interested in taking a look at the documents Treasury sent lawmakers on behalf of theCFPB regarding the bureau's involvement in mortgage servicing negotiations. I hear that Treasury sentthe documents to House lawmakers on Tuesday - are they in email format? Or can I pick up copies

(b) (6)

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from you? Let me know the best way I can get a hold of them.

Best,Maya

Maya Jackson RandallFinancial Reporter,Dow Jones Newswires/Wall Street Journal Bureau

Washington, D.C.Office: 202-862-6687(b) (6)


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From: Murray, Colleen

To: Risotto, Andrea;Adamske, StevenDisabled

Subject: RE: Comment on Garrett et al. letter?


Steve have you gotten asked for anything or has there been any discussion on this today? Would we

want to offer a quote on accountability? I'm happy to draft something. Just let me know.

-----Original Message-----From: Risotto, AndreaSent: Wednesday, March 09, 2011 12:30 PMTo: Adamske, Steven; Murray, ColleenSubject: FW: Comment on Garrett et al. letter?

Can someone help with this?

Andrea RisottoDirect: 202-927-8726| Fax: 202-927-9219Email: [email protected]

-----Original Message-----From: CARTER DOUGHERTY, BLOOMBERG/ NEWSROOM: [mailto:[email protected]]Sent: Wednesday, March 09, 2011 12:28 PMTo: Risotto, AndreaSubject: Comment on Garrett et al. letter?

Andrea,

Hi, I cover the CFPB for Bloomberg and wanted to see if you had any comment on this letter on themortgage servicing deal from Rep. Garrett?

Thanks,

------------------------------------------------------------Carter DoughertyBloomberg NewsConsumer Finance Reporter - DCo. +1 202 624 1907c. (b) (6)


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To: LeCompte, Jenni;Adamske, StevenDisabled

Subject: RE: Eliz Warren WSJ story

Date: Monday, March 07, 2011 1:01:53 PM

I havent talked to Victoria or Maya about this, but Im happy to try and track down more infowith Jen.

From: LeCompte, JenniSent: Monday, March 07, 2011 12:24 PMTo: Adamske, Steven; Murray, ColleenSubject: FW: Eliz Warren WSJ story

Have either of you talked to Victoria or Maya about this piece? I had asked Jen about this in

Fridays 830 meeting since they were on her schedule and didnt feel like I got the clearest answer.

Would love to know more about the general thesis for this piece and when we expect it to pop.

From: LeCompte, Jenni

Sent: Monday, March 07, 2011 12:21 PMTo: Brundage, AmyCc: Psaki, Jennifer R.; Earnest, Joshua R.Subject: RE: Eliz Warren WSJ story

I am broadly aware of this story know that it has been in the works for some time and that

Victoria and Maya Randall Jackson of DJ, who I believe is working with her on the piece, spoke to

EW as recently as Friday with some follow ups.

Quote below looks fine, but again, I dont have much visibility into where the piece overall is

headed.

From: Brundage, AmySent: Monday, March 07, 2011 12:05 PMTo: LeCompte, JenniCc: Psaki, Jennifer R.; Earnest, Joshua R.Subject: Eliz Warren WSJ story

We got contacted by Victoria McGrane at the WSJ for that story she is working on re Elizabeth

Warren. Are you guys aware of it? (b) (5)

Amy Brundage


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To: Murray, ColleenDisabled;Adamske, StevenDisabled

Subject: RE: Eliz Warren WSJ story


That would be great - thanks

From: Murray, ColleenSent: Monday, March 07, 2011 1:01 PMTo: LeCompte, Jenni; Adamske, StevenSubject: RE: Eliz Warren WSJ story

I havent talked to Victoria or Maya about this, but Im happy to try and track down more infowith Jen.

From: LeCompte, JenniSent: Monday, March 07, 2011 12:24 PMTo: Adamske, Steven; Murray, ColleenSubject: FW: Eliz Warren WSJ story




From: LeCompte, JenniSent: Monday, March 07, 2011 12:21 PMTo: Brundage, AmyCc: Psaki, Jennifer R.; Earnest, Joshua R.Subject: RE: Eliz Warren WSJ story




Quote below looks fine, but again, I dont have much visibility into where the piece overall is

headed.

From: Brundage, Amy [Sent: Monday, March 07, 2011 12:05 PMTo: LeCompte, JenniCc: Psaki, Jennifer R.; Earnest, Joshua R.

Subject: Eliz Warren WSJ story


Warren. Are you guys aware of it? (b) (5)

Amy Brundage


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From: Shahien Nasiripour


Subject: RE: EWarren?

Date: Monday, July 18, 2011 7:11:12 PM

Understood. And fair points all.

Thanks, Colleen.On Jul 18, 2011 7:08 PM, wrote:> Ok, one last thing, off the record: if you are going to say these sourcesare close to the Secretary, I would expect that you talked to someone likethe President, Pete Rouse, Mark Patterson, Bill Daley, Jake, etc. It seems,shady at best, that your sources from a year ago simply say "nothing haschanged." I have serious doubts that unless of the caliber of the folkslisted about - those that the Secretary does indeed speak with regularly -they have actually had this conversation with the Secretary. Certainly notrecently. Frankly, he has bigger fish to fry than to spend time speculatingabout something that is not his decision to make. He has plenty of toughones of his own.>

> We're going to let the Secretary's statement from yesterday stand. So nocomment from us.>> Thanks for hearing me out.>> Colleen>> -----Original Message-----> From: Shahien Nasiripour> Sent: Monday, July 18, 2011 6:21 PM> To: Murray, Colleen; Paustenbach, Mark> Subject: EWarren?>

> Hey there, we're writing a story that reports the Treasury Secretary never> warmed to the idea of Warren leading CFPB. We've got it from multiple> people.>> Does Treasury wish to comment?>>> Shahien Nasiripour | Senior Business Reporter | The Huffington Post |

| [email protected](b) (6)

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Shahien Nasiripour | Senior Business Reporter | The Huffington Post || [email protected](b) (6)


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From: Goldstein, Jeffrey

To: Siewert, JakeDisabled; Caldwell, PhyllisDisabled; Massad, Timothy;Adamske, StevenDisabled; Murray,ColleenDisabled

Subject: Re: HuffPo on Settlement

Date: Wednesday, March 16, 2011 7:36:09 AM

I heard the state AGs were thinking about some option along these lines.

----- Original Message -----From: Siewert, JakeTo: Goldstein, Jeffrey; Caldwell, Phyllis; Massad, Timothy; Adamske, Steven; Murray, ColleenSent: Wed Mar 16 06:29:36 2011Subject: HuffPo on Settlement

"SHOCK AND AWE" ON MORTGAGES - HuffPo's Shahien Nasiripour has good detail on the state of playin the mortgage servicer settlement talks: "The Obama administration is seeking to force the nation'sfive largest mortgage firms to reduce monthly payments for as many as three million distressedhomeowners in as little as six months ... Described as a 'shock and awe' approach ... The modifiedmortgages could cost the five financial behemoths -- Bank of America, JPMorgan Chase, Citigroup, WellsFargo and Ally Financial -- as much as $30 billion" http://huff.to/dSM9po


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From: Howard, Jennifer (CFPB)

To: Adamske, StevenDisabled;Adeyemo, Adewale (Wally)

Subject: Re: HuffPost (Nasiripour): Obama Administration"s Plan To Punish Banks

Date: Wednesday, March 16, 2011 8:31:56 AM

Yep, I'm on it.

From: Adamske, StevenTo: Howard, Jennifer (CFPB); Adeyemo, Adewale (Wally) (CFPB)Sent: Wed Mar 16 08:30:44 2011Subject: FW: HuffPost (Nasiripour): Obama Administration's Plan To Punish Banks

Please make sure she see this before the testimony. Thanks.

Steven Adamske



202.622.0501 (direct)

(mobile)

202.622.2920 (office)

[email protected]

From: Gudmundson, ErikaSent: Wednesday, March 16, 2011 8:29 AMTo: _DL_FYISubject: HuffPost (Nasiripour): Obama Administration's Plan To Punish Banks

Obama Administration's Plan To Punish Banks

from HP - Shahien by Shahien Nasiripour

NEW YORK -- The Obama administration is seeking to force the nation's five largestmortgage firms to reduce monthly payments for as many as three million distressedhomeowners in as little as six months as part of an agreement to settle accusations ofimproper foreclosures and violations of consumer protection laws, six people familiar withthe matter said.

Described as a "shock and awe" approach, the deal would accomplish the four goals set outby state and federal policy makers and regulators as part of their multi-agency investigationsinto abusive mortgage practices by the nation's largest financial firms: punish banks forviolations of state law and federal regulations; provide much-needed assistance to distressedborrowers; stabilize a deteriorating housing market; and dissuade firms from abusinghomeowners in the future.

The modified mortgages could cost the five financial behemoths -- Bank of America,JPMorgan Chase, Citigroup, Wells Fargo and Ally Financial -- as much as $30 billion,

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according to sources. Combined, the five firms handle three out of every five home loans,according to newsletter and data providerInside Mortgage Finance.

It also could lead to reduced mortgage payments or lowered loan balances for nearly two-thirds of the 4.7 million delinquent homeowners who have yet to fall into foreclosure,according to data provider Lender Processing Services.

The aim is to ensure the number of assisted borrowers is spread throughout the country, andthat banks modify both expensive and inexpensive mortgages, people involved in the talkssaid. Banks also would likely forgive mortgage principal in situations where a pre-determinedformula dictated that it was the best way to modify a home loan. Balances on secondmortgages and home equity loans -- of which nearly half of all outstanding loans are ownedby BofA, JPMorgan, Citi and Wells -- would also have to be written down.

That would then kick-start the healing process needed to clear the large overhang ofrepossessed and soon-to-be-foreclosed homes that's depressing house prices and sappingconsumer confidence, people involved in the negotiations said.

But the deal is far from complete.

While most of the federal agencies involved in the probe are near agreement on the outlinesof a settlement, a few holdouts remain -- most notably national bank regulator the Office ofthe Comptroller of the Currency, sources familiar with the internal deliberations said. Thenascent Bureau of Consumer Financial Protection, a unit of the Treasury Department, isinvolved in the discussions, as is the Federal Deposit Insurance Corporation and theDepartment of Housing and Urban Development. The Justice Department is leading the talks.The OCC appears likely to not participate in a joint federal action, sources said.

Details like the target number of restructured home loans, the total fines to be levied, whichmortgages would be modified and how so, have yet to be worked out among the federal

agencies. And the 50 state attorneys general, who are pursuing a separate investigation butare working with federal authorities, have yet to even negotiate with the targeted lenders, letalone agree on a single strategy to penalize banks that broke state laws in pursuing improperforeclosures, officials said. They, too, have held limited discussions on the structure of ahomeowner assistance program.

Meanwhile, banks, while eager to put the controversies over wrongful home repossessionsand "robo-signing" behind them, do not want to be the only firms that pay for what could bea mass mortgage principal forgiveness scheme. They want government-owned mortgagegiants Fannie Mae and Freddie Mac, which own or guarantee more than half of all homeloans, to participate in any initiative that calls for lowering homeowners' loan balances.Fannie and Freddie's regulator has been reluctant to allow them to participate, citing hisresponsibility of minimizing the cost of the bailout to taxpayers, people involved in the talkssaid.

The OCC and Fannie and Freddie's regulator, the Federal Housing Finance Agency, havelong declined to comment on the federal probe beyond what their leaders have said publicly.

The number of targeted modifications ranges from one to three million, and the time frame torestructure those loans ranges from six months to as many as 18 months, people familiar withthe matter said. Stiff penalties would be assessed if banks failed to meet their quotas. The


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penalties would make noncompliance costlier than modifying troubled mortgages, thesepeople said.

The Obama administration wants a quick resolution to the probes, and is putting pressure onthe small group of state attorneys general leading their investigation to wrap it up, sourcessaid. On Tuesday, Treasury Secretary Timothy Geithner told a Senate committee that "allparties have a stake in bringing this to resolution as quickly as possible."

"It's very important that we try to bring this to bed as quickly as we can," Geithner told theSenate Banking Committee.

Investors, homeowner advocates and law enforcement officials hoping for a deepinvestigation into allegedly widespread mortgage abuses by the nation's largest financial firmsmay ultimately be disappointed.

The state group has not yet filed a complaint detailing their findings and the violations ofvarious states' laws. While some states individually have sent banks formal investigativerequests for information -- and received reams of documents in return - - they haven't yetacted as a group.

People involved in the state discussions said they don't even know the full extent of the so-called robo-signing scandal or other possible violations of state law because they haven'tconducted an in-depth investigation.

At least one attorney general, New York's Eric Schneiderman, has voiced concerns aboutsigning on to any agreement that forces him to give up his right to pursue mortgage-relatedviolations of his state's laws in order to participate in what is widely acknowledged to be amulti-billion dollar deal, sources said.

There's been little discussion among the state officials over what claims they'd release banks

from in exchange for agreeing to penalties and a requirement they improve their dealingswith homeowners, these people said.

Schneiderman wants to probe improper lending practices; failures to follow state laws whenbanks bundled home loans into securities; and allegations of deception by lenders who soldinvestors now-toxic mortgages.

If others join him, it's unclear how the 50 state attorneys general can reach a unifiedagreement.

But the banks won't sign any agreement that forces them to abide by new rules and paysubstantial penalties that doesn't clear them of liability or at least significantly lessen the

chance of a state-brought lawsuit, sources familiar with their position said.

This week, the state officials were supposed to be meeting with each of the five largestmortgage firms -- one a day -- to negotiate a possible resolution. The attorneys generalcancelled the talks after it appeared the banks weren't going to take the discussions seriously,according to people familiar with the matter. The state officials then declined to followthrough on their plan to subpoena the banks for information.

The banks are now crafting their own proposal, people familiar with the discussions said.


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"It feels as if this is the last good opportunity consumers have to get some relief from theforeclosure crisis," Kevin Stein, associate director of the California Reinvestment Coalitionand a member of the Federal Reserve's Consumer Advisory Council, told the Fed on March10.

Iowa Attorney General Tom Miller, who's leading the 50-state probe, made a similar pitch tohis fellow attorneys general last week during a closed-door meeting in Washington,

according to state officials in the room. He also told the law enforcement officials about theadministration's desire to push for as many as three million loan modifications in as few assix months.

Almost three million homes have been seized since the start of 2008, according to dataprovider RealtyTrac. More than 2.2 million homes were in foreclosure through January,according to Lender Processing Services. The Fed forecasts 4.9 million homes to receiveforeclosure filings this year and next, Fed Governor Daniel Tarullo said Dec. 1.

The state and federal investigations began as a response to revelations that large banksemployed workers who signed hundreds of foreclosure documents a day without readingthem -- a violation of many states' laws. The probes then mushroomed into anacknowledgement among top officials that the mortgage servicing industry is deeply flawedand is likely abusing hundreds of thousands of homeowners a year.

Now, officials are hoping those probes can be used to finally heal a troubled housing market-- a task numerous Obama administration programs failed to accomplish.

Standing in their way are top Republicans in Congress, who argue that politics is trumpingthe rule of law. Sen. Richard Shelby of Alabama, the top Republican on the Senate BankingCommittee, blasted government officials, likening their demands to a "shakedown."

Rep. Randy Neugebauer, a Texas Republican who serves on the House Financial Services

Committee, said last week that it "verges on extortion."

Others have said the plan to use the scandal as a vehicle to modify delinquent mortgages is areprise of the administration's primary homeowner assistance initiative, the Home AffordableModification Program, better known as HAMP. HAMP has been widely panned for its poorresults.

The House will vote this week to repeal HAMP. The Republican-controlled House will likelybreeze towards repeal. The legislation will likely die in the Democratic-controlled Senate,however.

The sentiment fueling the GOP's resistance to helping troubled borrowers also is playing a

role in the internal discussions among the state attorneys general.

The group is led by a committee of 13 attorneys general -- seven Democrats and sixRepublicans -- which in turn is captained by four of them -- three Democrats and oneRepublican.

In interviews last week, numerous Republican attorneys general said they're giving thecommittee a "long leash" to get a deal done with the banks.

Mark Shurtleff, the Republican attorney general of Utah, said the attorneys general that will


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not be on the negotiating committee will simply wait for them to come to a resolution withthe banks, which the full group of 50 will discuss at the National Association of AttorneysGeneral summer meeting in June.

But even that has limits.

A preliminary term sheet that was to be provided to the nation's five largest mortgage firms

was leaked to the news media earlier this month. That document detailed how the banksshould treat homeowners in the future.

Some Republicans have privately grumbled that the proposal may force lenders to reduceloan balances, or mortgage principal. People involved in the state discussions conceded thatany deal that forces lenders to forgive mortgage principal would likely not be agreed to by all50 states.

More than 11 million homeowners with a mortgage, or more than 23 percent, owe more onthat debt than their home is worth, according to data provider CoreLogic. Nationwide, thatdeficit between what is owed and what the homes are worth equates to $751 billion.

"Negative equity holds millions of borrowers captive in their homes, unable to move or selltheir properties," Mark Fleming, chief economist with CoreLogic, said in a statement lastweek. Until that recedes, the housing market will remain "very sluggish," he added.

Congress twice tried to pass legislation during the first two years of the Obamaadministration that would have allowed judges to forgive principal on primary mortgages inbankruptcy proceedings. One effort was voted down in the Senate; the second one wasdefeated in the House. Banks vehemently oppose such measures.

Reducing loan balances will likely be the sticking point in internal discussions betweenstates, officials involved in the negotiations said.

The attorneys general from Texas, Nebraska, Oklahoma and Virginia are concerned withsuch an approach, officials said. All either declined comment or did not respond to requestsfor comment.

To mollify those concerns, officials are considering alternative proposals that would bothpenalize firms that have broken state laws and provide a boost to the housing market.

For example, short sales may be counted as part of the target of one to three million loanmodifications. Also on the table are proposals that would force banks to subsidize homepurchases by credit-worthy borrowers. This would be used to satisfy concerns that onlydelinquent borrowers are being helped by the settlement agreement.

Officials stressed that despite disagreements over the scope of assistance provided tohomeowners, there's near-unanimity when it comes to going after financial firms forviolations of state laws prohibiting unfair and deceptive practices, and cases in which firms'sloppy foreclosure practices amounted to fraud on local courts.

"Laws were not being followed by the servicers," Illinois Attorney General Lisa Madigan, aDemocrat, said last week. "That absolutely has to change."

Republican Attorney General John Suthers of Colorado said the state officials "want to


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remedy losses that have occurred as a result of those problems."

Meanwhile, federal officials are looking at potential violations of rules governing their loanmodification programs, as well as failures to comply with regulations surrounding taxpayer-backed loans through the Federal Housing Administration.

The banks declined to comment, citing the confidentiality that generally governs their

dealings with regulators and law enforcement authorities.


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To: Adamske, StevenDisabled

Subject: Re: BLOOMBERG-Foreclosure Settlement Plan Flawed, U.S. House Republicans Say


No bc they hadn't written or asked. I will send now.

From: Adamske, StevenTo: Murray, ColleenSent: Wed Mar 09 16:07:24 2011Subject: FW: BLOOMBERG-Foreclosure Settlement Plan Flawed, U.S. House Republicans Say

Did they get the statement?

Steven Adamske



202.622.0501 (direct)

(mobile)

202.622.2920 (office)

[email protected]

From: Robertson, WilliamSent: Wednesday, March 09, 2011 4:04 PMTo: _DL_Communications; _DL_FYISubject: BLOOMBERG-Foreclosure Settlement Plan Flawed, U.S. House Republicans Say

Foreclosure Settlement Plan Flawed, U.S.House Republicans Say

By Carter Dougherty and Lorraine Woellert - Mar 9, 2011

U.S. House Republicans criticized a proposed federal-state settlement of flawed foreclosurepractices and questioned whether the Consumer Financial Protection Bureau has authority toparticipate in the talks.

The settlement agreement not only legislates new standards and practices for the servicing

industry, it also resuscitates programs and policies that have not worked or that Congress hasexplicitly rejected, the lawmakers wrote in a letter dated today to Treasury SecretaryTimothy F. Geithner.

State attorneys general and a federal task force have been investigating flawed paperworkand improper procedures in foreclosures. Officials have been negotiating a settlement withthe top mortgage servicers, including Bank of America Corp. (BAC), JPMorgan Chase & Co.(JPM), Citigroup Inc. (C), Wells Fargo & Co. (WFC) and Ally Financial Inc.

State and federal officials gave the firms a 27-page settlement term sheet last week

(b) (6)


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outlining future rules on mortgage servicing and conditions for possible mortgagemodifications. They had previously floated the idea of a $20 billion penalty as part of anydeal.

The letter, written by Representative Scott Garrett ofNew Jersey, took specific aim at theconsumer bureau, which is scheduled to officially begin work on July 21. Elizabeth Warren,the Treasury and White House adviser charged with setting it up, got the job in September

after Christopher Dodd, then head of the Senate Banking Committee, said she couldnt winthe necessary votes for confirmation as its formal director.

In todays letter, the lawmakers said that since it does not yet have any regulatory orenforcement authority the consumer bureaus role in servicing talks raises further questionsabout the process through which the terms of the settlement are being negotiated.

Other Signatures

Garrett, who heads the Financial Services subcommittee on capital markets and thegovernment-sponsored enterprises, was joined by Spencer Bachus ofAlabama, the

committees chairman; Randy Neugebauer ofTexas, chairman of the subcommittee onoversight and investigations; and Patrick McHenry ofNorth Carolina, who heads the financesubcommittee of the House Government Oversight Committee.

Jennifer Howard, a spokeswoman for the consumer bureau, and Andrea Risotto, aspokeswoman for the Treasury Department, didnt immediately respond to requests forcomment.

Tom Miller, the Iowa attorney general who is leading the servicing talks for the states, saidon March 8 that the CFPB should take the lead in enforcing any settlement since it will havejurisdiction over mortgages.

More Sense

It makes a lot more sense to have them enforce it from the beginning, Miller, a Democrat,told reporters in Washington.

If it turns out that the CFPB doesnt have direct authority in federal law to negotiate asettlement, it could codify the deal in a new regulation when it begins official operations inJuly, Miller said.

Greg Zoeller, the Republican attorney general ofIndiana, who opposed the bureaus creation,

said the consumer bureau should circle back and codify any legal deal with mortgageservicers.

The concern I have is that you skip the regulatory process by negotiating a settlementdirectly with the banks, Zoeller said in a March 8 interview.

State attorneys general of both parties have embraced the CFPB and Warren as a player inthe talks, both because it could enforce the deal, and because Warren is a useful point ofcontact for them, said Roy Cooper, the attorney general of North Carolina.


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Fact of Life

I think theres a pretty strong feeling that we need to work with the bureau, Cooper, aDemocrat, said in an interview. Its a fact of life.

In the letter to Geithner, the Republicans demanded answers to a list of questions on the

specific legal authority that the federal government has to negotiate the settlement, and therole of persons associated with the CFPB in the talks.

They also asked about the legal basis for using money from a settlement to fund principalreductions in mortgages, and how a deal would affect the safety and soundness of firmscovered by it.

To contact the reporters on this story: Carter Dougherty in Washington [email protected]; Lorraine Woellert in Washington at [email protected].

To contact the editor responsible for this story: Lawrence Roberts [email protected].


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industry(WellsFargo,JPMorganChase,BankofAmerica,AmericanBankersAssociation,etc.),themortgageindustry(NationalAssociationofRealtors,MortgageBankersAssociation)consumeradvocates(ConsumerFederationofAmerica,LeadershipConferenceonCivilRights,etc.)andothergroups.(Note:seepressreleaseforfulllist)

AlsoseatedtogetheratthetablewerethreeadministrationofficialswhoplayedcentralrolesinhelpingusherthefinancialoverhaullegislationthroughCongressoverthepastyear

Diana

Farrell,

deputy

director

ofthe

National

Economic

Council;

deputy

Treasury

secretary

NealWolin;andassistantsecretaryMichaelBarr,whohadbeenmentionedasapossibledirectorfortheBureauofConsumerFinancialProtection.

SecretaryGeithnerandElizabethWarren,onhersecondworkingdayasassistanttothepresidentandspecialadvisertotheTreasurysecretary,enteredlastandtooktheirseatsatthecenterofthetable.Geithnerworeagraysuit,blueshirt,purpletie.Warrenworeatealsuitjacket,blackshirtandblackpants.Theybothworesmiles.

Wellstartwithafewbriefremarks,andthenwellinviteourfriendfromthepresstodepart,Geithnersaid,sothatthegroupcouldhaveaconversationaboutthesubstance.

GeithnersaidoneofthecornerstonesoftheDoddFrankfinancialoverhaulbillsignedinJulywasthecreationofthenewbureautoprotectordinaryconsumers.Oneofthemostimportantwayswecandothatistoimprovedisclosure,hesaid.Disclosureisntgoingtosolveallproblems,butitisoneofthemostpowerfultoolswehaveforgettingpeoplebetterinformationsotheycanmakebetterchoicesabouthowtheyborrow.

GeithnercalledTuesdaysmeetingthefirststeptowardmakingadramaticimprovementtothecurrentsystembybringingmoresimplicityandclaritytoexistingdisclosureforms.

HethenyieldedtoWarren,whobeganbysaying,Itsnosecrettothisgroupthatconsumersneedgoodinformationsothattheycanmakegooddecisions.Thatswhatthisundertakingisabout.Warrensaidsheviewedtheforumwithgreatoptimism,becauseitismysensethattherearemanypeopleatthistablewhoreallywanttogettoamuchbetterplace.

Theircommentslastedlessthan5minutes.Nootherparticipantsspoke.PoolmemberswereusheredoutafterWarrenconcludedhercomments,afterwhichthesubstantiveconversationpresumablybegan.Theinitialmeetingwasslatedtolastaboutanhour,officialssaid,followedbysmallerbreakoutsessions.

(TranscriptofGeithnerandWarrenremarkstofollowfromTreasury)


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[email protected](b) (6)


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After several weeks of officially pleasant interactions, signs are emerging that the Treasury Department's knivesmay be coming out against Elizabeth Warren. In recent weeks, Treasury officials have leaked details aboutWarren to Politico as part of what appears to be an effort to paint her as some kind of prima donna. Theserelatively silly stories raise troubling questions, however, about what Treasury officials may be leaking withfewer fingerprints and greater ramifications.

The Politico pieces have been petty, but there's no doubt they both came from Treasury. On Oct. 12, Politicoran a piece featuring this anonymous nugget (among others):

SomeatTreasurygrumblethatWarren,inherearlymemos,spentmuchtimedetailingwhatpressshewasgoingtodo..

ratherthanthenutsandboltsofsettingupanagency.

Then yesterday, in Politico's Morning Money column:

NEWPAINTJOB WealsohearthatwhileWarrenisoutwest,herTreasuryofficeisgettingamakeover(Warrenwill

havedigsbothatTreasuryandtheCFPB'sLStreetheadquarters).That'ssomethingofararityforTreasuryofficials,who

usuallyleavetheirofficesasis.ThereismuchinternaldebateastoexactlywhatcoloritisthatisgoinguponWarren's

walls.Onepersoncalledit"Arizonasunset,"another"terracotta."

Both of these represent the kind of meaningless, issue-free, pseudo-news that serves as Politico's bread-and-butter. The actual complaints themselves, of course, are preposterous. Warren is painting her office and makingmedia appearances -- exactly the sort of things you'd expect the head of a new federal agency to be doing duringher first weeks on the job. But look at the frame Treasury is putting on the stories. In both, Warren is portrayedas an ego-centric fluff-monger, not a serious policymaker. Look atfancy Elizabeth Warrenpainting her office!Our humble boss Timothy Geithner wouldneverdo such a thing!

Just days before an election, it's somewhat astonishing that Treasury officials would be working the media tosmear Warren instead of, say, talking about the economy. And it's certainly counterproductive for Treasury tobe creating these distractions for the new, can't-be-independent-soon-enough agency as it sets out to re-regulateWall Street.

This sort of bad judgment is surprising even in light of the burdens Treasury's failures have created for theWhite House over the past two years. But this silly back-biting wouldn't be that troubling on its own. A fewchildish press people going rogue, maybe, or perhaps petty payback for some perceived bureaucratic slight. Butlast night's HuffPost Hill newslettersubtly connects the leaks to a brutally dishonest article that appeared in theNew York Times this week:

TREASURYGUNNINGFORELIZABETHWARREN? ShahienNasiripoursendsusword:"Thismorning,Politico'sBenWhite

reportedthatElizabethWarren's'Treasuryofficeisgettingamakeover...somethingofararityforTreasuryofficials.'...

ThelatestleakbyTreasuryofficialsagainstWarrenhasreformadvocatesworried.'There'snodoubtthey'retryingto

undermineher,'onesourcesays.Observersofthenewagencyalsohavebeenscratchingtheirheadsaboutwhomay

have

been

behind

a

controversialNewYorkTimes

story

on

Wednesday

about

Elizabeth

Warren

aide

Raj

Date,

who

workedcloselywithconsumeradvocatesandwashailedforhiseffortsduringthefinancialreformdebate.Date

attractedstrongdefenseontheblogosphereintheaftermathofastoryreformersconsidertobeanunfairhitpiece.

If in fact Treasury officials playedany sort of role behind the Times story, it's hard to state just how disgustingsuch behavior would be. The article in question is an outrageous smear targeting Raj Date, one of the mostcommitted and effective consumer advocates in the United States. No reporter who had even tangentiallycovered the Wall Street reform bill would have written it, and the fact that the Times' editors allowed it to beprinted is a grave embarrassment. Few people I've spoken to say they'd be surprised if it was planted bysomebody pursuing an agenda against Warren and the CFPB.


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As I explained on Wednesday, the Times story is a pack of innuendo and distortion that tries to portray Date'syears of work on behalf of consumers as a bank lobby plot to enrich subprime lenders. The article absolutelyshocked consumer advocates and members of Americans for Financial Reform who worked closely with Dateto rein in Wall Street (disclosure: I have been a member of AFR's steering committee since August), and therehas been considerable pushback to the story's mischaracterizations this week from reform advocates.

I had assumed the Timespiece was planted by a bank lobbyist looking to hamstring the young agency -- until Isaw Thursday's Morning Money, and realized that Treasury people weren't just griping with reporters on

background -- they were actively leaking attacks, however childish.

Treasury officials would be making a serious error if they think they can scapegoat Warren in an effort todeflect criticism from the Department's own very real failings. As Chair of the Congressional Oversight Panelfor the Troubled Asset Relief Program, Warren has been highlighting major problems with the Treasury'sforeclosure relief plan for literally years. But Geithner and Treasury have steadfastly refused to change theprogram, as millions of avoidable foreclosures have rained down on the economy.

The result, ultimately, has been bad for the bigwig bankers and too-big-to-fail behemoths that Geithner hasboasted about subsidizing stabilizing. Last week, while Treasury continued to deny that the ever-escalatingforeclosure fraud outbreak is a serious problem, investors started placing bets that Bank of America's stock will

sink below $3.00 a share.

So Wall Street reform advocates are concerned, and you can bet they'll be watching Treasury very closely overthe coming months, because their willingness to work with Warren will indicate a tremendous amount aboutTreasury's commitment to financial reform ofany variety.

When President Barack Obama named Warren to her current post, he did so in an unusual manner. The newhead of the CFPB would require 60 votes for Senate confirmation, and it appeared that a confirmation processwould be both long and difficult. So instead of formally nominating Warren as CFPB Director, Obama namedher a special adviser to both the president and Treasury. Since the Treasury has temporary authority over theCFPB, Warren's new post allows her to set-up the agency without going through a confirmation battle.

Reform advocates were divided by the maneuver. It was either a clever piece of strategy -- allowing Warren tobuild up her political appeal for confirmation by demonstrating her effectiveness -- or it was an effort to scuttleher away into a powerless role. In either case, reformers promised to keep an eye on any efforts at Treasury toundermine her work.

If Treasury is indeed behind the Date hit-piece, there could be no real question about Geithner's machinations.Trash-talking Warren, her top advisers and the CFPB itself would be an unmistakable effort to compromise theentire enterprise. If it worked, Geithner could deny Warren the formal nomination as CFPB director, Warrenwould go the way of Brooksley Born, and less consumer-friendly officials could quietly crush the youngagency.

That would be a shame, since a strong CFPB headed by Warren is the signature accomplishment of the WallStreet reform bill Obama signed this summer. Whatever its other shortcomings, the legislation created theopportunity to level the playing field between bigwig bankers and ordinary citizens and strengthen the financialsecurity of American households.

That's a big if, of course. But reformers will be watching Treasury very closely from here on out.


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Follow Zach Carter on Twitter: www.twitter.com/zachdcarter

From: Raman, Aneesh

Sent: Friday, October 29, 2010 2:56 PMTo: _DL_Communications

Subject: HUffPost front page

TREASURY'S KNIVES

COMING OUT AGAINST

ELIZABETH WARREN?

Mike Lux: 'The Election War And The Internal War'


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MynameisCarterDoughertyandIamthefreshlymintedconsumerfinancereporterforBloomberg.I'mwritingtoseewhattheTreasuryprocedureisforgettingfinancialdisclosureformsforTreasuryemployees(theOfficeofGovernmentEthicsinformsmethatTreasuryhandlesitsownforms).

PleaseletmeknowhowIcangetthose.Idon'tbelievetheyusuallyrequireaFOIArequest.

Thanks,Carter

CarterDoughertyBloombergNewsConsumerFinanceReporter DCo.+12026241907(b) (6)


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part of the financial reform bill President Barack Obama is expected to sign into law on Wednesday, the agencyis supposed to protect borrowers from predatory lenders and centralize the federal government's role when it

comes to extending credit to consumers. Warren conceived of the agency in 2007 and since last year has served

as the public face of the campaign to enact it into law.

But some have speculated Warren may face an uphill battle to become its inaugural chief. Lenders fear her --particularly given her strong advocacy on behalf of the debt-strapped middle class -- and are furiously fighting

her potential nomination as she's viewed as the most consumer-friendly of the candidates. Their friends in the

Senate may take up their cause.

Proponents and critics agree that the first director will have a lasting impact on the agency, from the hiring ofstaff to the general attitude it takes towards consumer protection. Some are expected to prepare a Supreme

Court-style campaign when Obama names his nominee.

During a radio interview Monday, Senate Banking Committee Chairman Christopher Dodd said there's a

"serious question" over whether she, as Obama's nominee, could be confirmed by the Senate.

"We are confident she is confirmable," White House spokeswoman Jennifer Psaki said.

The administration, though, could bypass the Senate entirely -- without engendering the ill-will that wouldresult from a recess appointment.

Story continues below

According to the bill's language, the Treasury Secretary has sole authority to build the new agency before it'sultimately transferred to the Federal Reserve. That includes anointing a person to head the effort on his behalf,

and under his authority. The interim head would serve until the President's nominee is confirmed by the Senate.

That person could be Elizabeth Warren.

And the legislation doesn't appear to contain a deadline for a Presidential nomination, experts say, which meansWarren could start the agency from scratch, put her people in, begin cracking down on predatory and abusivelenders, and initiate a culture that would put consumers' interests above those of the nation's most powerful

financial institutions.

In short, she could set a tone the agency will follow for the next several years without the administration

needing to fight a potentially drawn-out confirmation battle that could stall Obama's pro-consumer agenda.

"The statute gives the Treasury Secretary the obligation to get it done, but doesn't tell him how to get it done,"

Gail Hillebrand, a senior attorney at Consumers Union and manager of the group's financial services campaign,

said about the Secretary's role in creating the new agency.

Picking an interim head is one of the authorities Congress granted him in the legislation. Whomever Geithner

hires would be serving that role on his behalf, and would ultimately be his responsibility.

So Geithner could, presumably, hire Warren on a contract basis to perform that role, Hillebrand said.

Michael Barr, the Treasury's assistant secretary for financial institutions, and Eugene Kimmelman, a top Justice

Department official who worked for various consumer groups prior to government service, are the other

candidates for the position, White House officials said Friday.


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Geithner is said to prefer Barr, a key lieutenant and a noted consumer advocate, for the role. Geithner opposesWarren's nomination, according to a source familiar with Geithner's views, though the Treasury Secretary,

through Barr and a department spokesman, said Friday that Warren is "well qualified" for the position.

Though Hillebrand said she couldn't immediately pinpoint a deadline in the legislation mandating a Presidential

nominee, she added that there must be some kind of deadline that she wasn't aware of. It wasn't immediately

clear, though.

Geithner's pick would be able to begin protecting taxpayers and consumers "immediately," Hillebrand said. Andthe pick could serve for months, if not longer.

That's what the legislation was probably designed to accomplish, the consumer advocate noted. Whenever a

new federal agency is created it makes sense to pick someone in the interim "to get things going. Clearly, that

would be authorized here," she said.

"Consumers have waiting a long time," Hillebrand said. "The sooner we can get it off the ground the better."

Americans for Financial Reform, a coalition of more than 250 groups organized to fight for strong financialreform, endorsed Warren on Monday to head the new agency. Rep. Carolyn Maloney, a New York Democrat,

and Senator Tom Harkin, a Democrat from Iowa, are both asking colleagues to sign letters urging Obama tonominate Warren for the post. Sen. Bernie Sanders, an independent from Vermont aligned with Senate

Democrats, wrote Obama on Monday asking him to nominate Warren.

"No one in our nation could do a better job," Sanders wrote.

Heather Booth, AFR's director, said proponents of reform should fight for "the strongest, most qualified"

candidate to head the consumer agency. AFR endorsed Warren.

"If there are people representing the interests of the biggest financial institutions, they can vote against" the

candidate, Booth said. "This is the time to vote whether you're for Main Street or for Wall Street."

Hillebrand added that regardless of when Obama picks the nominee there's going to be an "ideological fight."

So rather than face that fight now -- and potentially stall an agenda -- one consumer advocate suggested there's

nothing stopping the administration from installing the candidate most likely to fight back against the big banks

on behalf of consumers.

On Friday, White House senior adviser David Axelrod told reporters that regardless of whether Warren is

picked to officially head the agency, "one thing I know for certain is however we move forward she's going to

be a strong voice in helping shape this and make it the most effective voice for consumers that it possibly can

be."

Geithner picking her as the interim choice could be what Axelrod was referring to.

Warren declined to comment for this article. It is unclear whether she'd be interested in serving in such an

arrangement.

A Treasury spokesman said the department is first looking forward to Obama's signing of the bill on

Wednesday.


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From: Farrell, Diana ]

Sent: Monday, July 19, 2010 7:59 PMTo: Logan, Amanda; LeCompte, Jenni; Brundage, Amy; Psaki, Jennifer; Williams, AndrewSubject: RE: Got a sec to chat CFPB?

Best

DianaFrom: [email protected] [mailto:[email protected]]

Sent: Monday, July 19, 2010 7:27 PM

To: [email protected]; Brundage, Amy; Psaki, Jennifer R.; [email protected]; Farrell, DianaSubject: RE: Got a sec to chat CFPB?

Thatsoundsrighttome.HereareafewpointsonthissubjectfromtheinternalQ&AdocAmiasandco.puttogetherforthebriefingwiththesmallgroupofreporterslastWednesday.Wehaventclearedthislanguageforexternaldistribution,butNealspokeoffoftheseTPsatthebriefing.

(b) (5)

(b) (5)

Diana Farrell


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5


Sent: Monday, July 19, 2010 7:18 PMTo: Brundage, Amy; Psaki, Jennifer; Williams, Andrew; Farrell, DianaCc: Logan, Amanda

Subject: RE: Got a sec to chat CFPB?

From: Brundage, Amy

Sent: Monday, July 19, 2010 6:18 PMTo: Psaki, Jennifer; Williams, Andrew; Farrell, Diana; LeCompte, Jenni

Subject: FW: Got a sec to chat CFPB?

Ihaventgottenbacktohimyet,ButletmeknowiffolkshavehandledthisIhavenotyet

From: Shahien Nasiripour [mailto:[email protected]]

Sent: Monday, July 19, 2010 4:26 PMTo: Brundage, Amy

Subject: Re: Got a sec to chat CFPB?

No prob.

I'm curious to know if the White House has considered simply allowing the Treasury Secretary to install his

pick to head and build up the CFPB as soon as possible -- hiring staff, setting the tone, and thereby getting it offon the right foot -- in order to avoid a potentially drawn-out confirmation battle that may stall the agency's

progress. The bill allows for the Treasury Secretary to pick someone to get the agency running, and that person

would serve until the President officially nominates someone. Based on what I've heard, the person the Treasury

Secretary picks could serve for months, if not years (I believe).

(b) (5)

(b) (5)

(b) (5)

Amy Brundage


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2

These restrictions were part of the establishment of the consumer agency, and while they make it tougher for the

agency to operate, they may help it do its job better. In addition, they create real accountability while permitting

the agency sufficient independence to function effectively. Because of that independence, even with these

limits, I believe the agency can watch out for American families and support the kind of competitivemarketplace we all want.

JenHoward

SeniorSpokesperson

ConsumerFinancialProtectionBureauImplementationTeam

E:[email protected]

O:2024357454(b) (6)


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To: Adamske, StevenDisabled; Murray, ColleenDisabled

Subject: FW: Eliz Warren WSJ story





From: LeCompte, JenniSent: Monday, March 07, 2011 12:21 PMTo: Brundage, AmyCc: Psaki, Jennifer R.; Earnest, Joshua R.Subject: RE: Eliz Warren WSJ story




From: Brundage, Amy ]Sent: Monday, March 07, 2011 12:05 PMTo: LeCompte, JenniCc: Psaki, Jennifer R.; Earnest, Joshua R.Subject: Eliz Warren WSJ story


Warren. Are you guys aware of it?

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Amy Brundage


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From: Risotto, Andrea

To: Adamske, StevenDisabled; Murray, ColleenDisabled

Subject: FW: Comment on Garrett et al. letter?


Can someone help with this?

Andrea RisottoDirect: 202-927-8726| Fax: 202-927-9219Email: [email protected]

-----Original Message-----From: CARTER DOUGHERTY, BLOOMBERG/ NEWSROOM: [mailto:[email protected]]Sent: Wednesday, March 09, 2011 12:28 PMTo: Risotto, AndreaSubject: Comment on Garrett et al. letter?

Andrea,

Hi, I cover the CFPB for Bloomberg and wanted to see if you had any comment on this letter on themortgage servicing deal from Rep. Garrett?

Thanks,

------------------------------------------------------------Carter DoughertyBloomberg NewsConsumer Finance Reporter - DCo. +1 202 624 1907c. (b) (6)


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11.Shahien Nasiripour, Huffington Post12.Faiz Shakir, Think Progress (is editor so may pass on to a writer)13.Mark Schmitt, American Prospect (is an editor so may pass on to a writer)14.Brian Beutler, TPM15.Christina Bellantoni, TPM16.Duncan Black/Atrios, Eschaton17.Nick Baumann or Kevin Drum, Mother Jones18.Jonathan Singer, MyDD19.Jonathan Chait, TNR20.Felix Salmon, Reuters

From: LeCompte, JenniSent: Thursday, March 03, 2011 2:59 PMTo: Gudmundson, ErikaSubject: Have you sent out blogger briefing invitations?

JenniR.LeCompte

DeputyAssistantSecretary,OfficeofPublicAffairs

U.S.Department

of

the

Treasury

2026222910

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OriginalMessageFrom:ShahienNasiripourSent:Monday,July18,20116:21PMTo:Murray,Colleen;Paustenbach,MarkSubject:EWarren?

Heythere,

we're

writing

astory

that

reports

the

Treasury

Secretary

never

warmed

tothe

idea

ofWarrenleadingCFPB.We'vegotitfrommultiplepeople.

DoesTreasurywishtocomment?

ShahienNasiripour|SeniorBusinessReporter|TheHuffingtonPost|)|[email protected](b) (6)

(b) (6)

(b) (5)Obtained via FOIA by Judicial Watch, Inc.

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From: Shahien Nasiripour

To: Adamske, StevenDisabled

Subject: Foreclosure settlement talks

Date: Thursday, March 24, 2011 3:58:00 PM

Hey Steve, I have a copy of the draft Feb. 20 term sheet the various Fed

agencies were discussing regarding a global settlement for the foreclosureimproprieties issue. I'm told it's dead, due to fed agencies' inability tocome to an agreement. Wanna chat? Comment?

Best,

--Shahien Nasiripour | Senior Business Reporter | The Huffington Post |646.274.2455 (desk) | (mobile) | [email protected](b) (6)


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From: Martin, Alyssa (CFPB)

To: Geldon, Daniel (CFPB)Disabled;Adamske, StevenDisabled; LeCompte, Jenni; Rose, LaceyDisabled; Trebat,GabrielleDisabled; English, Leandra (CFPB); Riesen, Peter; Granat, Rochelle; Lepley, Richard (CFPB);Adeyemo,Adewale (Wally) ; Jackson, Peter (CFPB); "Smrthi [email protected]"; Date, Rajeev (CFPB); English, Leandra(CFPB); Canfield, Anna (CFPB)Disabled; Brundage, Amy; "Shin [email protected]"; "[email protected]";"Jesse C. [email protected]";Yi, CharlesDisabled; Moore, Megan; Martinez, Zixta (CFPB); Glaser, Elizabeth(CFPB); Suarez-Palomo, Victoria; Fitzpayne, Alastair; Patterson, Mark (DO);Valverde, Sam; Goodwin,RossDisabled;Antonakes, Steve (CFPB); Horton, Elizabeth; Brown, Amy (CFPB);Vail, Amber (CFPB); Howard,Jennifer (CFPB); Fuchs, Meredith (CFPB); Gordon, Michael (CFPB); Gonzalez, Roberto (CFPB); Kennedy,

Leonard (CFPB);Alag, Sartaj (CFPB)Disabled; Riley, Jeffrey (CFPB)Subject: Elizabeth Warren: Week Ahead

Date: Thursday, March 03, 2011 6:42:04 PM

Elizabeth Warren Calendar

Press, Outreach

Friday, March 4

- Interview with Maya

Jackson Randall and Victoria McGrane (Wall Street Journal)

-

-

Monday, March 7

-

Tuesday, March 8

-

Wednesday, March 9

-

Thursday, March 10-

Alyssa Martin

Consumer Financial Protection Bureau Implementation Team

NR

NR

NR

NR

NR

NR

NR


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Email: [email protected]

Office: 202-435-7111

Cell: (b) (6)


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To: Geldon, Daniel (CFPB)Disabled;Adamske, StevenDisabled; LeCompte, Jenni; Rose, LaceyDisabled; Trebat,GabrielleDisabled; English, Leandra (CFPB); Riesen, Peter; Granat, Rochelle; Lepley, Richard (CFPB);Adeyemo,Adewale (Wally) ; Jackson, Peter (CFPB); "Smrthi [email protected]"; Date, Rajeev (CFPB); English, Leandra(CFPB); Canfield, Anna (CFPB)Disabled; Brundage, Amy; "Shin [email protected]"; "[email protected]";"Jesse C. [email protected]"; Moore, Megan; Martinez, Zixta (CFPB); Glaser, Elizabeth (CFPB); Suarez-Palomo, Victoria; Fitzpayne, Alastair; Patterson, Mark (DO);Valverde, Sam; Goodwin, RossDisabled;Antonakes,Steve (CFPB); Horton, Elizabeth; Brown, Amy (CFPB);Vail, Amber (CFPB); Howard, Jennifer (CFPB); Fuchs,Meredith (CFPB); Gordon, Michael (CFPB); Gonzalez, Roberto (CFPB); Kennedy, Leonard (CFPB);Alag, Sartaj

(CFPB)Disabled; Riley, Jeffrey (CFPB)Subject: Elizabeth Warren: Week Ahead

Date: Wednesday, April 13, 2011 5:51:07 PM


Press, OutreachThursday, April 14

-

Monday, April 18

-

- Media: Meeting with Carter Dougherty

-

Tuesday, April 19-

Alyssa Martin



Office: 202-435-7111

Cell: (b) (6)

NR

NR

NR

NR


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Date: Monday, April 11, 2011 6:54:43 PM


Press, OutreachTuesday, April 12

-

Wednesday, April 13-

Thursday, April 14-

Monday, April 17

-


-

Alyssa Martin



Office: 202-435-7111

Cell: (b) (6)

NR

NR

NR

NR

NR


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Date: Friday, April 15, 2011 7:47:38 PM


Press, OutreachMonday, April 18

-


-

Tuesday, April 19

-

Thursday, April 21

-

Alyssa Martin


Office: 202-435-7111

Cell: (b) (6)

NR

NR

NR

NR


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Hi -

I'm working on a story about a Treasury Dept. IG report that says the CFPB will not be able to regulate nonbanklenders if a Senate-confirmed director isn't in place by the July transfer date, which is just 6 months away.Nonbank lenders include firms like New Century, Ameriquest and Countrywide Financial -- firms whoselending activities arguably helped cause the crisis.

For the record, does the White House plan on having a Senate-confirmed director in place by July? How manycandidates are under consideration? Has the White House ruled out a recess appointment?

Thanks so much.

Best,

Shahien Nasiripour | Business Reporter | The Huffington Post | 646.274.2455 (desk) | |[email protected]

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For the record, does the White House plan on having a Senate-confirmed director in place by July? How manycandidates are under consideration? Has the White House ruled out a recess appointment?

Thanks so much.

Best,

Shahien Nasiripour | Business Reporter | The Huffington Post | 646.274.2455 (desk) | |

[email protected]

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5.Wouldyouconsiderarecessappointmentorareyoucommittedtosubmittinganametothe

Senate?

Thanksmuch,

Zach

ZacharyGoldfarb

Staffwriter,TheWashingtonPostTel:2023346242

Email:[email protected]

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From: Jackson-Randall, Maya


Subject: cfpb documents


Hi Colleen, I'm interested in taking a look at the documents Treasury sent lawmakers on behalf of the

CFPB regarding the bureau's involvement in mortgage servicing negotiations. I hear that Treasury sentthe documents to House lawmakers on Tuesday - are they in email format? Or can I pick up copiesfrom you? Let me know the best way I can get a hold of them.

Best,Maya

Maya Jackson RandallFinancial Reporter,Dow Jones Newswires/Wall Street Journal BureauWashington, D.C.Office: 202-862-6687Cell: (b) (6)


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Obtained via FOIA by Judici

Documents

FOIA 2011.10.106