http://www.huffingtonpost.com/2014/12/12/how-a-gift-to-wall-street_n_6317868.htmlWASHINGTON – Less than a month after Sen. Elizabeth Warren (D-Mass.) landed a new Senate leadership position, Senate Majority Leader Harry Reid (D-Nev.), Sen. Chuck Schumer (D-N.Y.) and President Barack Obama risked a fight with her over government subsidies for risky Wall Street derivatives trading.
They won the near-term policy fight: After a bruising bicameral battle, the House of Representatives narrowly approved an annual spending bill that granted taxpayer support for the risky financial contracts at the heart of the 2008 meltdown.
But the bitter feud left Reid and Obama politically embarrassed, while consolidating a burgeoning populist movement within the Democratic Party that highlighted Warren's influence in wings of the Capitol far removed from her perch on the Senate Banking Committee. It also forced Obama and a host of Democratic leaders into the crosshairs of a critique Warren typically levels at Republicans: that powerful people in Washington are rigging the system to help Wall Street at the expense of the middle class.
Hours after declaring White House support for the package, Obama was forced to send Chief of Staff Denis McDonough to the Hill to round up votes – a public admission that the president's party wasn't taking marching orders from him. By the end of the night, Obama, House Speaker John Boehner (R-Ohio), and Jamie Dimon, the CEO of the nation's largest bank, JPMorgan Chase, were all whipping members to support the package – a tremendously damaging scenario for Obama's stature with the Democratic electoral base. House Minority Leader Nancy Pelosi (D-Calif.) and her allies, meanwhile, played the role of underdog, digging in for a Tim Howard-esque performance that emboldened progressives, even in defeat.
"I'm proud that I voted no," Rep. Keith Ellison (D-Minn.), co-chair of the Congressional Progressive Caucus, told HuffPost. "The fight was clearly good for morale."