Magazine article American Banker

GOP Reiterates Worries over Structure of CFPB

Magazine article American Banker

GOP Reiterates Worries over Structure of CFPB

Article excerpt

Byline: Kevin Wack

WASHINGTON - A day after the White House nominated former Ohio Attorney General Richard Cordray to lead the Consumer Financial Protection Bureau, Republican senators who hold the key to his confirmation reiterated concerns Tuesday about the bureau's structure.

The choice of Cordray, now the bureau's enforcement director, solved the mystery over whom the administration would pick. But his appointment is far from assured. Forty-four GOP senators have pledged to block any nominee absent crucial reforms to the bureau's structure. They include having a multimember board run the bureau, subjecting the regulator to the appropriations process and making it easier for the Financial Stability Oversight Council to weigh in on CFPB decisions.

At a Banking Committee hearing about new consumer regulations in the Dodd-Frank Act, Republicans claimed the administration had at one point supported similar reforms, and they objected to being blamed for slowing the bureau's work.

"President Obama himself agreed with each of these three principles when he sent his original proposal to Congress" for a financial reform law "back in 2009," said Sen. Jerry Moran, R-Kan. "Yet our request to return to these same principles is now being categorized as an attempt to kill the bureau in its infancy."

Democrats on the panel sang a different tune. Committee Chairman Tim Johnson, D-S.D., cited a poll showing strong support for a single agency charged with catching consumer abuses in the financial industry. …

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