Senators Wrangle Over Consumer Protection

Roll Call
December 6, 2011
Sanchez, Humberto

U.S. Senate Democrats are pushing for the confirmation of Richard Cordray as the first director of the new Consumer Financial Protection Bureau (CFPB) as they build campaign momentum to demonstrate they are "guardians of the middle class." One Democratic aide said, "We think this is a bellwether vote to determine if you are on the side of consumers." GOP aides suggest that the push is merely to score political points and not obtain confirmation for Cordray given that Democrats have not reached out to address Republican concerns about the CFPB. U.S. Senate Majority Leader Harry Reid (D-Nev.) could cut off debate on the nomination on Dec. 6, which could push for a vote on Dec. 8. It is unclear if Democrats will have enough Republican votes to reach the required 60 votes necessary to overcome the filibuster. A recent White House National Economic Council report said, "Without a director, the CFPB cannot fully supervise non-bank financial institutions such as independent payday lenders, non-bank mortgage lenders, non-bank mortgage servicers, debt collectors, credit reporting agencies, and private student lenders." Republicans say that the CFPB should be set up like other agencies with a board, of which no more than three commissioners could belong to the same political party. They also would prefer the funding for the agency go through the congressional appropriations process.
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