Republicans Attacking CFPB on Multiple Fronts

Republicansrnin Congress are pulling out all the stops to make sure that Richard Cordray is not  confirmed to continue as Director of thernConsumer Finance Protection Bureau (CFPB) and, indeed, that the Bureau is notrnallow to exist in its present form.</p

Cordrayrncurrently serves as director through an interim presidential appointment inrnJanuary 2012 after Republican senators made it clear they would not confirmrnCordray or anyone else to the position. rnThey admitted they had no objections to the qualifications of Cordray orrnof Elizabeth Warren, the President’s supposed first pick for the position, butrnto the existence of the Bureau itself. rnCordray’s interim appointment is expiring and President Obama hasrnnominated him for a regular appointment.</p

RepresentativernJeb Hensarling (R-TX), Chairman of the House Financial Services Committee sentrna letter to Federal Reserve Board Chairman Ben Bernanke regarding thernlegality of a recent infusion of funds to the Bureau.  The Dodd-Frank Wall Street Reform andrnConsumer Protection Act set up the CFPB to receive its monies directly from thernFederal Reserve to insure its independence from Congress. The letter is basedrnon questions about the validity of Cordray’s original appointment because of arnrecent Appeals Court decision which invalidated the appointments of threernmembers of the National Labor Relations Board made on the same day, also torncircumvent the senate’s refusal to confirm any nominees for the positions.</p

Hensarlingrnasks the Board of Governors of the Federal Reserve to clarify the transfer ofrnfunds to the CFPB following that court decision on the basis that hernanticipates “a federal court will soon reach a similar conclusion with respectrnto the validity of Mr. Cordray’s appointment.”</p

The representative statesrnthat Dodd-Frank “authorizes the Board to transfer funds to carry out thernauthorities of the CFPB only at the request of its director.  Because it appears there is not presently arnvalidly appointed director of the CFPB, I question the circumstances underrnwhich the Board may lawfully fund the CFPB’s operations.”</p

Meanwhile, over in the Senate confirmation hearings on Cordrayrnwere scheduled today before the Senate Banking Committee despite a pledge by 43rnRepublican senators to block his confirmation unless structural changes arernmade to the Bureau including placing it under the control of a bipartisanrncommission and submitting its budget to the congressional appropriationsrnprocess.    Forty-three votes are enoughrnto block closure and prevent an up or down vote on the nomination.</p

In his written testimony</bprepared for his confirmation hearing Cordray said his approach to the role ofrnDirector is deeply informed by more than two decades in public service.  In his career as a county tax collector, Ohio StaternTreasurer and Attorney General he said he found "that law enforcementrnwhich is evenhanded, fair, andrnreasonable not only protects consumers,rnbut also supports what I callrnthe honest businesses in two key ways.  First,rnthe businesses that cheat can gainrna significant and unfair advantage, and lawrnenforcement protectsrnhonestrnbusinesses against the cheaters.rn Second, keeping thernmarketplace clean ensures consumers are treatedrnfairly and gives them confidence they need to participate inrnthat market."</p