Chamber of Commerce wants CFPB flaws addressed before director put in place

Tom DonohueTom Donohue, the president and CEO of the Chamber of Commerce, recently voiced his strong opposition to President Obama’s reported efforts to circumvent the Senate confirmation process for Richard Cordray to direct the Consumer Financial Protection Bureau.

The CFPB, according to Donohue, is fundamentally flawed and in need of substantial reform before it moves forward with a director, reports.

The flaws that need to be fixed are obvious and necessary, Donohue said.

Donohue said that the first problem is the bureau’s exemption from nearly every checks and balances system that helps ensure transparency and accountability at other independent regulatory bodies, such as the Consumer Product Safety Commission.

Another flaw, Donahue said, is that the bureau is controlled by a single, powerful director, who cannot be fired, even by the president, outside of extraordinary circumstances, according to The director will also control an annual budget larger than $500 million without any input from Congress on how that money is to be spent.

The Chamber of Commerce applauded Senate Republicans for blocking Cordray’s nomination to lead the CFPB until such issues have been addressed.

Any move by Obama to make a recess appointment, Donahue said, would “take away the only real check Congress has over the bureau’s enormous power – the confirmation of its director."

“And an unreformed, unaccountable CFPB would threaten our recovery at the worst possible time,” Donohue said, reports.

Comments are closed.