Tom Brown has a peculiar column today taking issue with the inspired choice of Elizabeth Warren to chair the panel overseeing the TARP program. The problem, in his eyes, is that Warren is a fighter for consumers, rather than banks. Brown reckons she's absolutely wrong when she says that banks attempt to pry every dollar possible out of consumers, fairly or otherwise:
Warren's view of the consumer finance industry, and the "tricks" at lenders' disposal, happens to be 100% wrong. If consumer lenders really did have the fearsome advantage over their customers Warren imagines, how is it that the entire subprime mortgage industry has gone out of business over the past 18 months? Or that most monoline card lenders have either gone belly up or have been forced to seek buyers? Here's why: consumer lending is a tough, competitive business. Lenders don't have proprietary, unfair tricks. They all get competed away.