Republican Senators Reiterate Opposition to CFPB Nomination, Demand Structural Reforms

Posted on February 11th, 2013 in Consumer Finance, Federal Issues By BuckleySandler

On February 1, Republican Senators sent a letter to President Obama to reaffirm their position that the CFPB lacks transparency and accountability, and that until structural reforms are implemented, the 43 signatories will continue to block consideration of any nominee for CFPB director. Specifically, the letter states that (i) the CFPB director-led structure should be replaced by a bipartisan board of directors, (ii) the CFPB should be subject to the annual congressional appropriations process, and (iii) prudential regulators should be empowered to serve as a safety and soundness check to CFPB actions. Also on February 1, Senator Rob Portman (R-OH), who opted not to sign the letter to President Obama, sent a separate letter to CFPB Director Cordray to highlight the “commonsense reforms” to the CFPB that the two previously have discussed, including a change in the CFPB’s governance structure. The letter states that Mr. Cordray “noted…leadership by a bipartisan board provides some stability and continuity in regulation over time.” On February 7, Senator Portman reportedly is aiming to serve as a liaison between the White House and congressional Republicans on Mr. Cordray’s pending nomination and potential CFPB reforms. The only other Republican Senator not to sign the letter to President Obama was Senator Bob Corker (R-TN).

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