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The Bank-Loving Wall St. Journal Attacks Elizabeth Warren Again

The unofficial czar of the new Consumer Financial Protection Bureau, Elizabeth Warren, told Congress last week that her organization is "the most constrained and the most accountable agency in government," and then repeated similar claims on CNBC Tuesday. If nothing else, you have to admire her nerve.

Let's start with that "most accountable" howler. The bureau is part of the Federal Reserve System, but the Dodd-Frank law that created it explicitly says that Fed Governors can't "intervene" in the bureau's functioning, "appoint, direct or remove any officer or employee" or "merge or consolidate the bureau . . . with any division or office of the Board of Governors or the Federal Reserve Banks." So while the bureau is part of the Fed, it isn't at all accountable to anyone at the Fed.

No matter, Ms. Warren told Congress, because the bureau is "the only agency whose rules can be overruled, obliterated, wiped out, negated by other agencies." That's called exaggerating a small truth to obscure a larger untruth.