The Obama Administration is reaching out to banks opposed to the new Consumer Financial Protection Bureau in order to help secure the Senate’s approval of Richard Cordray as director.
The White House has acknowledged that banks do not like the CFPB but said that without a director, banks continue to be at a disadvantage because they are already covered by many consumer protection regulations while non-bank lenders are not, BusinessInsider.com reports.
Brian Deese, the deputy director of the National Economic Council, said that the bureau is “hamstrung” without a director.
"The lack of a director in place creates two really important problems," Deese said, according to BusinessInsider.com. "We have an un-level playing field in our financial system: Banks are being supervised, but payday lenders are not. This creates an un-level playing field for our banks. Also the non-bank sector is where we have seen some of the most harmful and deceptive predatory lending practices — some of which led to the financial crisis that we're just recovering from."
The Senate is expected to vote on the nomination on Thursday. The Obama Administration has invited reporters from seven states with Senators who can swing the vote to the White House on Thursday to interview the president, BusinessInsider.com reports. These states, which include Alaska, Indiana, Iowa, Nevada, Maine, Tennessee and Utah, have recently been showered with attention from the president in attempts to build public support for the nomination.
It is unclear if the swing state Senators or any banks will join Obama in calling for Cordray's confirmation, according to BusinessInsider.com.