CFPB Report March 15, 2013

March 15, 2013

CFPB Director Corday's Confirmation Hearing

On March 12, 2013, the Senate Banking Committee met to consider the nominations of Mary Jo White for Chairman of the Securities and Exchange Commission (“SEC”) and Richard Cordray as Director of the Consumer Financial Protection Bureau (“CFPB”). Ms. White seemed to garner broad support from the Committee, and while many Members on the Left pledged their strong backing of Mr. Cordray, opposition centered more on the structure and funding of the CFPB than on his qualifications as a nominee. 

Committee Democrats focused on the premise upon which Cordray’s nomination was being opposed. In his introductory remarks, Sen. Sherrod Brown (D-OH) accused Republicans of holding up a qualified nominee simply because they don't like the agency he will lead, not because of actual qualification issues. This sentiment was later echoed by Sen. Elizabeth Warren (D-MA), who exhaustively reviewed the historical precedent for an agency with a single director, pointing to the OCC as an example, and suggesting that the attempt to filibuster Cordray’s nomination was an effort to weaken the agency. She signaled in her comments that impeding the progress of the CFPB was an attack on the American consumer, stating, “The American people deserve a Congress that worries less about helping big banks and more about helping the American people." 

Ranking Member Mike Crapo (R-ID) used his opening comments to draw the distinction between the SEC and CFPB oversight structures, saying that moving the CFPB from a single director to a board format is critical. He further advocated for the agency to be brought into the Federal appropriations process, as well as preserving the FSOC’s ability to overturn a CFPB rulemaking. Crapo was the only Member to question the constitutionality of the Cordray’s recess appointment vis-à-vis the court’s recent ruling invalidating recess appointments to the National Labor Relations Board. In an exchange during the question and answer period of the hearing, Cordray gently pushed back on Crapo’s accusations around a lack of transparency at the agency, saying that the CFPB must report to Congress twice a year, face a GAO audit of its financials and is subject to oversight from the Federal Reserve’s Inspector General. Sen. Bob Corker (R-TN) expressed support for a deal being reached on his confirmation.