Republican Senators Introduce Bill to Halt CFPB Funding Until Director Confirmed

American Banker
February 1, 2013
Finkle, Victoria

Republican Sens. Mike Johanns of Nebraska, Lamar Alexander of Tennessee, and John Cornyn of Texas have introduced legislation to halt certain work at the U.S. Consumer Financial Protection Bureau (CFPB) until the agency confirms a director. The measure would stop the transfer of funds from the Federal Reserve for any actions, including implementing rules, that require the approval of a director. Its introduction follows a federal appeals court ruling last week against three recess appointments to the National Labor Relations Board, which casts doubt on the legality of CFPB Director Richard Cordray's recess appointment. Ahead of the court's decision, President Barack Obama already re-nominated Cordray as CFPB's director, but it is unclear if the contentious atmosphere will hinder his reappointment as Senate Republicans look for changes to the agency's structure. Republicans would like the bureau to establish a five-person commission instead of a single director; to subject the agency to the appropriations process; and give other banking regulators more discretion to overrule the agency's decisions.
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