Senate Committee to Weigh CFPB Director’s Future, Authority

The fate of the Consumer Financial Protection Bureau and the status of its director Richard Cordray will come to the attention members of the Senate in a hearing scheduled for Tuesday.  

The appointment of Cordray will come before the Senate Banking Committee after being called into question by a court decision in early 2013. Having been initially appointed by President Obama during a congressional “recess” in 2012, Republicans have long opposed the leadership organization of the agency and the unprecedented power they say it wields. 

Not only does the appointment in question yield potential for the director, but additionally, for the agency’s authority. Under Dodd-Frank, the bureau can only take certain actions under the direction of such a leader. 

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Reportedly, 43 of 45 Republican senators are opposed to the appointment, prompting what is being called a “contentious” meeting among the senate committee. 

The hearing is scheduled for Tuesday at 10 am Eastern time. 

Written by Elizabeth Ecker

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  • The President declared the Senate was in recess despite its proforma sessions. So far the courts have found there was no Recess by Constitutional standards.

    So ultimately the issue is whether the President gets to define when the Senate is in recess or the Courts. What is interesting is the President NEVER tried to appoint now Senator Warren (D-MA). During the period of abeyance there were several clear recess periods where the President could have appointed her but refused to do so. Based on his conduct with the Questionable Director Cordray, the President wanted to pick his fight over his appointment.

    If the CFPB is thrown into havoc, blame the bullheadedness of our President. He chose to fight over whether he had the right to determine if the Senate was in session versus that body itself.

  • The CFPB right from the start was our President’s way of getting a controlling position on our financial industry.

    The CFPB and Richard Cordray has had the autonomy and the tremendous amount of authority President Obama was shooting for all along.

    It is about time the members of the senate deal with this dictatorship style of rule. The entire Dodd-Frank bill should be repealed, however, that is dreaming for the time being!

    John A. Smaldone

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