Senate Committee Says OK to Cordray for CFPB, GOP Not Convinced

After months of opposition by Republican members of Congress against the appointment of Richard Cordray to serve as Consumer Financial Protection Bureau director, the Senate Banking Committee today voted, along party lines, to approve his nomination. 

During a hearing considering Cordray for the CFPB director spot, the committee voted 12-10 in favor of moving the nomination along. Yet Republican members of the committee remained unconvinced that approving Cordray is the best course of action for the consumer watchdog, with unanimous opposition of the nomination. 

“This issue with his confirmation is a broader debate,” said Senator Mike Crapo (R-Idaho) in comments before the committee. “The CFPB was established unlike any other government department or agency.” 

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The agency’s power and authority was called into question by a recent court case raising speculation regarding the constitutionality of Cordray’s appointment, made by recess appointment by President Obama. Without a confirmed director, the CFPB can only take certain actions, especially when it comes to oversight of non-bank financial organizations. 

Through the committee vote, the nomination will go to a vote of the full Senate. 

Written by Elizabeth Ecker

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  • I am leaning toward agreeing with the GOP. I feel Cordray’s appointment was not valid and the move to appoint him was a rushed decision made on purpose.

    The CFPB has moved swiftly since it inception to over regulate, over control and have caused a lot of chaos within the lending and banking market place. We have seen many small banks close or merge because of all the regulations handed down on the part of the CFPB. We have also seen many small businesses fail, indirectly because of the failure of small banks.

    The reverse mortgage industry has gone through many up hill battles because of the CPFB and will continue to face many more challenges!

    I wonder if this was a power play move in order to jam in the CFPB to take over as much of our financial industry as quickly as they could?

    John Smaldone

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