CFPB Nominee Vows to “Streamline” Regulations in First Senate Hearing

September 6, 2011

Despite vows to “to streamline and cut back” the government’s ever-growing financial regulation rulebook, it appears GOP lawmakers have still not warmed up to Richard Cordray, President Obama’s pick to direct the new Consumer Financial Protection Bureau.

In his first Senate nomination hearing Tuesday, Cordray – the former Ohio AG who currently serves as the CFPB’s chief enforcer, aimed to reassure Republicans and bureau naysayers that the agency’s regulatory authority is not too broad.

“We are required by law to communicate and consult with our fellow banking agencies,” he said, according to the New York Times. “I would hope and expect that concerns that they have about our work and concerns we may have about their work are things we will discuss regularly, that we will work those issues out when we do have disagreements, as I’m sure will occur from time to time, and that it never be necessary to actually invoke some sort of super process to override our rules.”

Republicans during the hearing, however, did not seem appeased.

“Unless the bureau is reformed, it is only a matter of time before this concentration of power is abused or misused to the detriment of American consumers and the economy,” said Sen. Richard Shelby (R-AL), the committee’s minority leader.

Sen. Robert Corker (R-TN) claimed Democrats on the committee have been “spewing” what he calls “half truths, mistruths, untruths” in order to justify the new agency. “Almost all of this would go away if the administration would just sit down and put the appropriate checks and balances in place,” he added.

In May, 44 GOP lawmakers sent a letter to President Obama claiming they would refuse to approve any nominee for CFPB director until the bureau’s regulatory authority was amended.

“The senators called for a board of directors to replace the position of director, for subjecting the bureau to the Congressional appropriations process, and for putting in place guarantees that enforcement of consumer regulations will not interfere with the financial health of banks,” reports the New York Times.

Click here to read more of Cordray’s comments from the hearing, as well as Democrats’ defense of the new agency.


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