January 12, 2012
Richard Cordray, the newly appointed head of the Consumer Financial Protection Bureau, has agreed to testify later this month before a U.S. House oversight panel, according the Wall Street Journal.
“He is likely to face tough questions about the president’s decision last week to bypass the Senate and install him as director,” comments the newspaper in reference to the President’s Jan. 4 recess appointment of Cordray. “The hearing undoubtedly will be packed with financial industry representatives and others eager to hear Mr. Cordray’s answers not only on bureau operations but also on legal questions about his appointment.”
(Related Analysis: Recess Appointment at CFPB Is High-Stakes Move)
Rep. Patrick McHenry (R., N.C.), who heads a financial services subcommittee of the House Oversight Committee, wrote to Cordray to request that he testify on Jan. 24.
McHenry stated the “unprecedented appointment of Mr. Cordray runs counter to the constitutional requirements for a recess appointment and Obama’s own campaign pledge to run ‘the most transparent administration in history.’”
“Considering that Mr. Cordray’s appointment sidestepped congressional approval, the Oversight Committee looks forward to hearing Mr. Cordray’s interpretations of the broad rules outlined in Dodd Frank for his agency,” added a subcommittee spokeswoman this week, explaining that the session will be used to gather information on how the bureau plans to move forward now that its director has been installed.
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