Senate Dems Urge Republicans To Side With Main Street, Confirm Consumer Bureau Chief

By Andrea Salazar

Senate Banking Committee Democrats called on Republicans Wednesday to vote to confirm Richard Cordray —  the president’s nomination for director of the Consumer Financial Protection Bureau.

President Obama nominated Cordray, a former Ohio attorney general, to head the bureau in July. However, Senate Republicans have promised to block his confirmation until the agency’s powers are limited.

But at the Wednesday news conference in support of Cordray’s nomination, Sen. Robert Menendez (D-N.J.) argued that Cordray’s confirmation is necessary to keep community banks and credit unions competitive.

“You put them at a competitive disadvantage by not having a director, because payday lenders, check cashing places, pawn brokers, the types of loans going to military families, that all goes largely unregulated without a director at the Consumer Financial Protection Bureau,” Menendez said.

The Consumer Financial Protection Bureau is a federal agency that came out of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. Its mission, as stated on the bureau’s website is to “make markets for consumer financial products and services work for Americans — whether they are applying for a mortgage, choosing among credit cards, or using any number of other consumer financial products.”

Sen. Jack Reed (D-R.I.) said that not confirming a director is “sort of like saying, ‘sorry, you can’t have a commissioner of the FDA until you repeal all the food, drug and safety laws in the country.’ Doesn’t make sense.”

The Senate is expected to vote on Cordray’s nomination Thursday.

“Voting for Richard Cordray means you’re on the side of people on Main Street. Voting against him, means you’re on the side of Wall Street,” Menendez said.

GOP Critical Of Consumer Bureau Chief's Authority

By Mike Hothi

House Republicans expressed concerns over the reach of the Consumer Financial Protection Bureau (CFPB) on Wednesday, once again calling for more oversight.

“My fear is that there is simply no check and balances. It can easily become a loose cannon,” said Rep. Spencer Bachus (R-Ala.), Chairman of the full House Financial Services Committee. “The director has unprecedented power to ban financial products and services based on whether or not he deems them unfair, deceptive or abusive — under really a highly subjective standard.”

Raj Date, who ascended to his role atop the bureau following Elizabeth Warren’s departure, did his best to defend the agency from the onslaught of Republican critiques, specifically those critical of the authority held by the agency’s lone director. 

“If you do not make someone singularly responsible for a hard job, you should not expect that it gets done well,” Date said. “I typically look for management teams that are headed by a person who knows that they are on the hook, so that you know who to credit and who to blame. Somebody has to be on the hook for hard jobs.”

The hearing marks another chapter in a long series of debates over the bureau’s authority and its consumer-driven regulations and Date will continue to bear the brunt of Republican critiques until President Obama’s nominee to head the agency, Richard Cordray, is confirmed in the Senate. 

Benny Martinez contributed to this story…

Congress, America Back Warren In CFPB Director Nomination

By Sarah Mamula - Talk Radio News Service

President Obama recently signed into law the Dodd-Frank Wall Street reform bill, and in doing so, he also created the new Consumer Financial Protection Bureau (CFPB). The bureau’s mission is to protect consumers from unfair and deceptive treatment by financial providers. Now, the question on Capitol Hill is, who will Obama appoint as the new CFPB Director? Congress appears to have one person in mind, Professor Elizabeth Warren.

“It is absolutely necessary that we have a strong smart consumer advocate who will look out for the needs of ordinary people as the head of the CFPB,” said Senator Bernie Sanders (I-VT). “Professor Elizabeth Warren is that person.”

Harvard Law School Professor, Elizabeth Warren, became the chair of the TARP Congressional Oversight Panel and has advocated the creation of the CFPB since 2007. Warren has Congressional leaders from both the House and the Senate pressing President Obama to nominate her for the positition.

“Who better to serve as director of the bureau than its architect?” said Rep. Rosa DeLauro (D-Conn). DeLauro also emphasized that Warren predicted the current recession three years ago, and has been “fearless” in speaking her mind without thought of gaining “disfavor of those at the top.” 

Warren not only has Congress supporting her nomination, but according to Rep. Carolyn Maloney (D-N.Y.), 140,000 Americans have signed a petition in their support for Warren.

“The bill signing was just the first step,” said Rep. Maloney. “The implementation is just as important as passing the bill.”

After the Senate’s recent grilling of Elena Kagan, Rep. Maloney welcomes the confirmation process and stands behind a Warren noination.

“Her confirmation is a fight worth having,” Maloney said.

Sen. Tom Harkin (D-Iowa) added that Republicans would have no reason to oppose her. 

“Are the Republicans going to argue that she shouldn’t be confirmed because she’s too tough on the big banks…[and] the financial industry?” said Harkin. “Boy, that’ll get them a lot of votes in November.” 

Led by Sen. Harkin and Rep. Maloney, letters signed by over 50 House members and 12 Senators were sent to the President strongly encouraging his nomination for Warren.