Many on the left are disappointed that the president did not choose the Bureau’s most vocal advocate, Elizabeth Warren, who currently serves as an assistant to the president and adviser to the Treasury secretary. Republicans, on the other hand, are focused on the key issue: Regardless of who runs it, will the bureau be sufficiently accountable to the American people?
When discussing Obama’s unwillingness to listen to the GOP’s “proposed three commonsense reforms,” Shelby said this:
As a result, Mr. Cordray’s nomination is dead on arrival in the Senate and will remain so until these reasonable changes are made. The law allows the administration to delay the bureau’s start date for an additional six months. I encourage President Obama to exercise this option and come to the negotiating table.
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.
Wondering if Richard Cordray’s nomination would change the Republicans’ sentiment on the CFPB director’s confirmation process? If the Chamber of Commerce is any indicator, the Cordray for Warren substitution won’t make much of a difference.
In addition to announcing Richard Cordray as nominee for CFPB head, the new consumer protection bureau also released its progress report.
CFSA couldn’t agree more with what Elizabeth Warren wrote in her blogpost that announced the progress report:
Americans are looking for an honest marketplace. They want to know the costs up-front, so that they’re not blindsided by hidden fees, interest rate changes, or payment shocks. A properly functioning market relies on consumers’ getting the information necessary to make the best decision for themselves and their families. Consumers have the power to drive markets, but only if they’re provided with the basic information that lets them choose products that meet their needs and reject those that do not.
To learn more about CFSA’s mission to promote strong consumer protections when using payday advances, click here.
CFSA BEST PRACTICE #1: FULL DISCLOSURE
A member will comply with the disclosure requirements of the state in which the payday advance office is located and with federal disclosure requirements including the Federal Truth in Lending Act. A contract between a member and the customer must fully outline the terms of the payday advance transaction. Members agree to disclose the cost of the service fee both as a dollar amount and as an annual percentage rate (“APR”). A member, in compliance with CFSA guidelines where they do not conflict with applicable federal, state or local requirements, will further ensure full disclosure by making rates clearly visible to customers before they enter into the transaction process.
Earlier in the year, when the CFPB launched its Web site, CFPB Director Nominee Richard Cordray went on the record to discuss how the agency would work with state attorneys. Get a recap by viewing the following video below:
Despite getting “sidestepped” as some in the media are portraying, Elizabeth Warren sung praises of CFPB Head Nominee Richard Cordray. Released earlier this morning, Warren said the following of Cordray in a White House blogpost:
“Rich will be a strong leader for this agency. He has a proven track record of fighting for families during his time as head of the CFPB enforcement division, as Attorney General of Ohio, and throughout his career. He was one of the first senior executives I recruited for the agency, and his hard work and deep commitment make it clear he can make many important contributions in leading it. Rich is smart, he is tough, and he will make a stellar Director. I am very pleased for him and very pleased for the CFPB.
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The agency has stepped out in the right direction. The work is good. But this agency needs to have its full powers right now, and that means we need Rich in place as Director. Today, I’m celebrating — but I’m not taking my eye off those who want to cripple this agency. We got this agency by fighting, we stood it up by fighting, and, if takes more fighting to keep it strong and independent, then we can do it.”
Earlier this afternoon, and after much speculation over the weekend, President Barack Obama nominated former Ohio AG Richard Cordray to head the Consumer Financial Protection Bureau (CFPB).
Obama and Cordray were joined in the Rose Garden by Elizabeth Warren, widely considered the architect of the bureau. Though consumer groups wanted her to be named its leader, Warren was strongly opposed by Republicans and would have faced a difficult path to confirmation. And now the question remains: Will Cordray receive the same treatment, given that Senate Republicans have refused to confirm any nominee without changes to Bureau.
“Richard has helped stand up the bureau’s enforcement division over the past six months. He took this job, which meant being away from his wife and twins back in Ohio, because he believes so deeply in the mission of the bureau,” Obama said at the White House.
