President Barack Obama recently announced that he will nominate former Ohio Attorney General Richard Cordray to lead the Consumer Financial Protection Bureau.
The move snubs Elizabeth Warren, who helped create the agency and has acted as its advisor for the past year at the White House, according to The Seattle Times.
Warren’s outspokenness and aggressive stance against the business community has prevented backing from the administration, particularly Treasury Secretary Timothy Geithner.
Consumer advocates who strongly supported Warren’s nomination have expressed confidence in Cordray, who has led the bureau’s enforcement division since last year, The Seattle Times reports.
The bureau does not gain full measure of powers until the Senate confirms a nominee. Senate republicans had vowed to block Warren’s nomination and have recently signed a letter saying that they would refuse to vote on any nominee to head the bureau, insisting that the agency’s management be restructured to replace a single leader with a board of directors.
Cordray lost his re-election bid for Ohio attorney general in 2010 to a former Republican senator who portrayed Cordray as anti-business, according to The Seattle Times.
Cordray served for more than a decade in private practice and local political office before winning a special election in 2008 to become Ohio’s attorney general. During his time in office, he led a series of high-profile investigations into financial companies, including Marsh & McLennan, Bank of America and Merrill Lynch.
The settlements he won totaled more than $2 billion, according to The Seattle Times.