Elizabeth Warren, the Harvard University professor credited with conceiving the consumer financial protection regulator, said the bureau included in the financial reform bill will have "a lot of teeth."

"It has a lot of capacity to reshape the consumer credit market in a way that just works, becomes a real functioning market again, a market where consumers can see the products and say, 'Oh, that's how much it costs that's how much risk is associated with it,' and make comparisons," she said.

Warren, who is chairman of the congressional panel overseeing the Troubled Asset Relief Program, has been touted as a possible head of the new regulator.

She declined to say whether she would be interested in the job.

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