Cordray named as director of Consumer Financial Protection Bureau

President Obama has named former Ohio Attorney General Robert Cordray to the top position in the new Consumer Financial Protection Bureau.  Elizabeth Warren, who set up the agency, was passed over because the administration believes she would have trouble passing the Senate appointment process. Senate Republicans still threaten to block any appointee, however, without significant restructuring of the bureau.

Former Attorney General

Cordray, 52, serves currently as enforcement director of the bureau. Once the Attorney General of Ohio, Cordray lost the election last year to Republican Mike DeWine. Cordray has also served in the Ohio Congress and has been the state’s treasurer.

President Obama said in a statement:

“Richard Cordray has spent his career advocating for middle-class families, from his tenure as Ohio’s attorney general, to his most recent role as heading up the enforcement division at the (Bureau) and looking out for ordinary people in our financial system.”

The Consumer Financial Protection Bureau

The bureau was established as part of the Frank-Dodd Financial Reform act. The purpose of the agency agency is to protect consumers against abusive and fraudulent practices from non-bank financial entities, such as credit cards companies, mortgage and payday lenders. The Treasury Department will officially transfer power to the new agency on Thursday.

Warren passed over

Elizabeth warren, who has spent the last year setting up the bureau, was passed up for the top job. Warren reportedly endorses the appointment of Cordray.

“Rich has always had my strong support because he is tough, and he is smart – and that’s exactly the combination this new agency needs,” she said. “He was one of the first senior leaders I recruited for the agency, and his work and commitment have made it clear that he will make a stellar director.”

Also being considered for the job was Raj Date, a top aide at the bureau during its formation.

Senate approval required

Whoever is appointed to the position will need to be approved by the Senate. It is generally believed that liberal Warren could not pass the GOP’s scrutiny. Senate Republicans, however, have vowed to veto anybody Obama nominates to the post, regardless of party, without a significant restructuring of the bureau.

Republicans believe the new bureau should be run by a commission of five Senators instead of a single director. They also believe that the bureau should be subject to the same appropriations process as other governmental bodies. This, the GOP says, is in the interest of “transparency” and “full disclosure.”

Sources

Politico: http://www.politico.com/news/stories/0711/59206.html
My Fox NY: http://www.myfoxny.com/dpps/news/obama-names-consumer-financial-protection-director-dpgonc-km-20110717_14165917
Wall Street Journal: http://blogs.wsj.com/washwire/2011/07/15/obama-to-nominate-consumer-bureau-chief-next-week/?mod=google_news_blog