Senate Committee Approves Cordray to Head CFPB
The nomination of Richard Cordray to again head the Consumer Financial Protection Bureau was approved by the U.S. Senate Banking Committee by a 12-10 vote that was split down party lines.
Every Democrat on the Committee approved Cordray, every Republican opposed him.
Cordray’s approval by the full Senate still looks like it will continue to be stalled due to 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.
However, 43 Republicans have said they will block the nomination until the accountability of the bureau is improved. They sent a letter to President Obama on February 1 detailing changes in the structure of the CFPB. They want to manage it with a bipartisan commission, not a director. Republicans also think the budget should be approved by Congress instead of connected to the Federal Reserve.
Senator Elizabeth Warren (D-Mass) spoke out against the Republicans last week. She told a Consumer Federation of America conference that “blocking Rich Cordray is about keeping the game rigged…so that consumers remain in the dark–and a few bad actors can rake in big profits.”
Cordray has led the CFPB for over a year after being installed by President Obama during a recess appointment. Cordray, nominated by the President for a five-year term in late January, has enacted widely-praised rules and regulations on mortgages and credit cards during his time in office.
The CFPB was created in 2010 under the Dodd-Frank financial reform act after the financial crisis.