"Astonishing" That Big Banks Are Taking Taxpayer Money, Writing the Rules, Warren Says

Elizabeth Warren may be the American consumer's new best friend.

Warren, charged with overseeing the U.S. banking bailout (formally known as TARP), is pushing an agency that's devoted to looking out for individual Americans.

The proposed Consumer Financial Protection Agency would set more transparent rules for financial institutions to ensure consumers get help in understanding terms of their loans and agreements. Banks, however, are opposing another regulator.  

"The banks, big banks, always get what they want," says Warren, in the third part of her sitdown interview with Aaron Task at The Economist's Buttonwood gathering. "They have all the money, all the lobbyists. And boy is that's true on this one. There's just not a lobby on the other side."

Featured in the new Michael Moore film, "Capitalism: A Love Story," it has been an incredible ride for Warren, a Harvard University law professor, who was tapped in November of last year to keep track of the bank bailout money. While she has no judicial or legislative power as chair of the Congressional Oversight Panel, it hasn't prevented Warren from talking tough. And banks including Goldman and JPMorgan are listening.

"This is a moment when all around the country people are saying we've had it about up to here with these large financial institutions that want to write the rule then take our money. I find it astonishing that they have the nerve to show up and say, 'I'm a big financial institution. I took your money. And now I'm going to lobby against anything that might offer some protection to ordinary families in this marketplace,' " Warren says.

"This might be the time that the rules change," she says. The proposal for the Consumer Financial Protection Agency heads to the House Financial Services Committee next week.

Earlier:

• Warren "speechless" about record bonuses
• Housing market getting worse, Warren says