CFPB Director Banned From Testifying Before House Panel
Richard Cordray is scheduled to testify before the Senate Banking Committee today, but the Chairman of the House Financial Services Committee refuses to let him testify before the House panel because he hasn’t been approved by the Senate.
Representative Jeb Hensarling, a Republican from Texas, says Cordray’s doesn’t legitimately head the agency because of the controversial recess appointment used by President Obama.
Cordray is supposed to report that the Consumer Financial Protection Bureau has secured $425 million in relief for six million consumers wronged by financial service providers in its first 21 months, according to Bloomberg.
These recess appointments have become a major controversy, and earlier this year an appeals court ruled that similar recess appointments to a federal labor panel were unconstitutional.
The nomination of Richard Cordray to again head the Consumer Financial Protection Bureau was approved by the U.S. Senate Banking Committee in March by a 12-10 vote that was split down party lines. Every Democrat on the Committee approved Cordray, while every Republican opposed him. Republicans are demanding a change to the structure of the CFPB and replacing the single director with a commission.
Cordray’s approval by the full Senate still looks like it will continue to be stalled due to the deadlock preventing his vote. In order to be confirmed by the full Senate, 60 of the 100 Senators have to agree to allow his vote to come to the floor.