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Cordray drama continues to handicap CFPB

Richard CordrayNew evidence has recently emerged that may help Republicans with their case against the confirmation of Richard Cordray to lead the Consumer Financial Protection Bureau.

A new report released by Manhattan Institute’s Center for Legal Policy shows that during his term as Ohio’s attorney general, Cordray was a strong ally to the plaintiff’s bar. In an unrelated article, James Copeland, director of the Center for Legal Policy, wrote that Cordray received $830,000 from out-of-state plaintiff’s firms as attorney general, parceling out more than six lawsuits on a contingency-fee basis, PointofLaw.com reports.

Republicans insist that their opposition to Cordray’s confirmation is not personal towards Cordray, but that they are withholding their confirmation because they object to the lack of transparency and accountability at the newly created bureau.

Some observers, however, say that Senate Republicans have justification to object to Cordray’s appointment based on his unsuitability for the position, according to PointofLaw.com.

The CFPB has geared up its efforts to convince the public as well as legislators that the gridlock on the confirmation process is preventing the bureau to use its authority to extend its oversight to non-bank consumer lenders.

The Obama Administration is also urging the Senate to confirm Cordray.

"Without a director, the CFPB is hamstrung in its ability to protect consumers," a White House statement released after Cordray was approved by the Senate Banking Committee said, according to CreditCards.com. "Without a director, the CFPB will be unable to ensure that banks, debt collectors, private student loan providers and payday loan providers are properly supervised and that consumers are not put at risk of falling prey to the same kinds of abusive practices that helped cause the worst financial crisis since the Great Depression."

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