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Obama reaffirms his support for CFPB and Cordray during jobs speech

Barack ObamaDuring his jobs speech last week, President Obama indicated that he has no plans to scale back on the powers of the Consumer Financial Protection Bureau or to back down support for his nominee to direct the bureau, Credit.com reports.

The president took direct aim at Republican members of Congress who are holding hostage Richard Cordray’s nomination to direct the bureau unless substantial changes are made to the way the bureau is funded and structured.

Obama dismissed a notion that the economic crisis should be used as an excuse to wipe out the “basic protections that Americans have counted on for decades,” according to Credit.com. “I reject the idea that we need to ask people to choose between their jobs and their safety. I reject the argument that says for the economy to grow, we have to roll back protections that ban hidden fees by credit card companies, or rules that keep our kids from being exposed to mercury, or laws that prevent the health insurance industry from shortchanging patients.”

Until a director is confirmed, the CFPB remains unable to regulate non-bank entities such as payday lenders.

Cordray faced his first Senate hearing last week. Although Republicans members refrained from attacking his credentials, which include serving as Ohio’s attorney general as well as its treasurer, they criticized the amount of power given to the director of the agency.

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