This week, the hero of the Democratic Party’s liberal activists — Elizabeth Warren — forced the resignation of Robert Litan, a distinguished scholar from the center-left Brookings Institution. Her actions deserve attention because they suggest the tactics she might employ if she were to become the Democratic presidential nominee — or the president. Her hardball moves also underline just how intolerant of opposing views many liberals now are. Litan, who had been affiliated with Brookings for more than 40 years, is no conservative, but his failure to sign on to the Warren crusade against financial institutions turned him into a casualty. Previously, Warren had blocked investment banker Antonio Weiss from becoming a top Treasury official and Larry Summers from becoming Federal Reserve chairman. She has real power. But is she misusing it?
In the Litan case, Warren and her allies are angry about the growing opposition to a proposed Obama Labor Department rule that would increase disclosure requirements for financial advisers. In fact, that opposition now includes half of all House Democrats and virtually all Republicans in Congress. Ninety-six House Democrats signed a letter this month calling on President Obama to make major changes in the rule. “We continue to hear from constituents, academics, providers, and investors that there are specific provisions of the Rule that may cause market disruptions and limit the ability of segments of the market to reasonably access advice,” the lawmakers’ letter said.