Banking’s ‘Worst Nightmare’ Takes Her Fight to Senate

There may be a lot of bankers this week wishing Elizabeth Warren had been appointed director of the Consumer Financial Protection Bureau after all.

Ms. Warren’s defeat Tuesday of Republican Sen. Scott Brown of Massachusetts could make life far more uncomfortable for big banks than a role at the helm of the fledgling consumer agency, her brainchild.

Ms. Warren embraced policies during her campaign that make big-bank officials cringe, including reinstating Glass-Steagall, the Depression-era law that separated commercial and investment banks.

“Wall Street has reason to be afraid. She will add to…the voices in Congress saying that the megabanks need to be downsized,” said Camden Fine, president of the Independent Community Bankers of America, a trade group that also supports breaking up the megabanks.

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