Wall Street to loom large in Elizabeth Warren’s White House run

Combative Massachusetts Democrat the first notable candidate to confirm Trump challenge

US senator Elizabeth Warren is a fierce critic of President Donald Trump and on Monday took a big step towards a run for the presidency. Photograph: Reuters

US senator Elizabeth Warren is a fierce critic of President Donald Trump and on Monday took a big step towards a run for the presidency. Photograph: Reuters

 

US senator Elizabeth Warren on Monday became the most prominent Democrat to announce a challenge to the Republican president in 2020.

The Senator has strong liberal credentials and has taken on Wall Street in addition to trading barbs with President Donald Trump. Senator Warren said she had formed an exploratory committee, which will allow her to begin raising money to compete in what is expected to be a crowded Democratic primary field before the November 2020 presidential election.

She tweeted she would announce her decision on whether to run early in 2019.

Ms Warren (69) a senator from Massachusetts since 2013, became one of Mr Trump’s fiercest critics during the 2016 presidential race and they have continued to exchange biting insults during his presidency. Mr Trump mockingly refers to her as “Pocahontas” because of her claim to native American ancestry.

She has denounced Trump as an “insecure money grubber” with a platform of “racism, sexism and xenophobia” while the president has described the former Harvard Law School professor as “goofy” and a “lowlife” with “a nasty mouth”.

On Monday, She released a video in which she outlines her vision of a path to opportunity for all Americans, not just the wealthy.

“America’s middle class is under attack,” she says on the video. “How did we get here? Billionaires and big corporations decided they wanted more of the pie and they enlisted politicians to cut them a fatter slice.”

Ms Warren is likely to face a crowded field of Democrats including Senators Kamala Harris, Corey Booker, Kirsten Gillibrand, as well as former vice-president Joe Biden. Julian Castro, president Barack Obama’s housing secretary, formed an exploratory committee this month.

In searching for a candidate to run against Trump, Democrats will grapple with the tension between the party’s establishment and progressive wings that flared during the 2016 primary with Hillary Clinton and Senator Bernie Sanders, an independent who ran under the Democratic banner.

A Warren candidacy can expect opposition from Wall Street. In the US Senate, she has been a strong voice on financial issues and a self-described defender of the ordinary American against powerful interests.

Restricting banks

Following the 2007-2009 global financial crisis, Ms Warren emerged as a leading critic of Wall Street and continues to advocate for stiffer regulation and oversight, including reinstating a rule that would separate banks’ retail business from their riskier investment banking activities.

Ms Warren is a member of the Senate Banking Committee and has fought the Trump administration’s efforts to weaken post-crisis financial rules, going as far as to attack moderate Democrats who backed a May rewrite of the 2010 Dodd-Frank reform law.

In a September interview marking 10 years since the financial crisis, Ms Warren was asked about breaking up big banks. “Oh yeah,” she told the New York Times. “Give me a chance.”

Elizabeth Warren has attacked US president Donald Trump as an ‘insecure money grubber’ driven by greed and hate. Photograph: AFP/Getty
Elizabeth Warren has attacked US president Donald Trump as an ‘insecure money grubber’ driven by greed and hate. Photograph: AFP/Getty

She also has opposed the administration’s efforts to undermine the Consumer Financial Protection Bureau, an agency she helped create, and has pressurised the Federal Reserve to take a tough line on scandal-hit lender Wells Fargo.

Many of her policy positions have focused on economic inequality. She recently offered legislation calling on the US government to manufacture generic drugs to reduce their cost. In 2017 she joined other senators in a proposal to extend the federal Medicare health insurance programme for seniors to include everyone.

Ms Warren will have plenty of competition from women driving the Democratic Party’s resurgence as well as liberals and progressives, according to University of Virginia professor Larry Sabato.

Her 80 per cent name recognition does not translate into actual support. “Some Democrats swear by her and love her blunt style, while others are put off by her and fear she’d lose to Trump. Warren has a lot of convincing to do,” said Sabato, adding the same is true of many other Democratic contenders.

She will begin campaigning soon in some of the states with early presidential nominating contests, said a source familiar with her plans.

While Trump did not immediately respond to Warren’s announcement, Republican National Committee Chairwoman Ronna McDaniel dismissed her as “another extreme far-left obstructionist”. – Reuters