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Sen. Elizabeth Warren may have a reputation as the banking industry's toughest foe, but behind the scenes she's formed a growing alliance with community banks, a widespread and politically powerful group.
July 8 -
Sen. Elizabeth Warren voiced concerns Thursday about the regulatory burden facing community banks, asking whether the industry needs a two-tiered system of rules to keep the smallest institutions from being wiped out.
June 13 -
Sen. Elizabeth Warren's rise to a spot on the Democratic leadership team has supporters cheering, but it remains to be seen how the role will affect her work on banking issues.
November 14 -
WASHINGTON Sen. Elizabeth Warren, D-Mass., and Rep. Elijah Cummings, D-Md., are prodding the biggest banks for information about how they will respond to changes to a controversial Dodd-Frank Act swaps provision signed into law last month.
January 29
There's little love lost between Wall Street and Sen. Elizabeth Warren. But for the vast majority of banks and bankers, Warren is more friend than foe.
The Massachusetts senator has been a vocal supporter of community banks, advocating for more challenger banks based in the communities they serve. Smaller institutions,
Underlying these policies is Warren's understanding that a more competitive market for financial services works to the benefit of consumers.
In short, what Warren wants is to break up concentrated power in the financial industry and induce more competition and diversity in the marketplace. This works to the benefit of the financial services industry as a whole.
It's also in banks' best interests to support Warren's push for increased consumer protections. For example, Warren has emphasized the need to clean up practices among previously under-regulated payday lenders and debt collectors.
Moreover, Warren's populist policies should appeal to us all. The problems of middle-class Americans hardly exist in a vacuum. People with stagnant wages and heavy student debt burdens are less likely to qualify for or pursue
This issue cannot be reversed while consumers are still feeling the financial pinch. Policies that improve the economic prospects of a majority of Americans will have the added benefit of making them far more attractive to the financial services industry.
Warren suggests that
Warren's policies aim to put more money in people's pockets and deliver them from unmanageable debt. If people in the U.S. become more prosperous, they will in turn fuel economic growth and investment in areas like housing. Put another way, the confident consumer is a banker's best friend. The changes for which Warren is campaigning would cement that relationship.
Carl Packman is a writer, researcher and blogger. His latest book is