President Obama left many confused with his nomination of Richard Cordray to head the CFPB. If the Administration was looking for a less politically volatile candidate than Warren, then they didn’t seem to find one in Cordray. But Kate Davidson and Kevin Wack of the American Banker offered up a different explanation for the curious nomination. According to some insiders, the Cordray nomination could suggest that there were other motives at work:

“It’s hard to see how he can get confirmed unless the president is willing to cut a deal with Senate Republicans,” said Jaret Seiberg, financial services policy analyst at MF Global’s Washington Research Group. “That’s why you could definitely say that this nomination opens the door to a regulatory relief bill in this Congress.”

If this is indeed the case, then President Obama would likely wish to push Cordray through a recess appointment during the upcoming August recess. But can Republicans and Democrats find some common ground over these next few weeks? The clock is ticking.