Richard Cordray nomination blocked by Senate GOP

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Senate Republicans on Thursday blocked President Barack Obama's nomination of Richard Cordray to be the first director of the Consumer Financial Protection Bureau, as both sides accused the other of playing partisan politics with the new watchdog agency.

The 53-45 vote fell seven votes shy of the 60 needed to move Cordray's nomination past a key procedural hurdle, with all but two Republicans voting in favor of a filibuster.

Sen. Scott Brown (R-Mass.), who likely will face CFPB architect Elizabeth Warren in a tough election next year, joined all members of the Democratic caucus in backing Cordray, a former Ohio attorney general. Moderate GOP Sen. Olympia Snowe of Maine voted present.

During a White House news conference after the vote, Obama wouldn't rule out using a recess appointment to seat Cordray, though the GOP-controlled House could easily block that effort since the Constitution requires the Senate to obtain approval from the lower chamber when taking more than a three-day break.

"I will not take any options off the table when it comes to getting Richard Cordray in as director of the Consumer Financial Protection Bureau," Obama said. "The bottom line is we're going to look at all of our options. My hope and expectation is Republicans who blocked this nomination will come to their senses."

Thursday's vote leaves the fledgling financial bureau leaderless and unable to carry out some of its basic functions. Without a director, the agency cannot regulate non-bank financial businesses, including payday lenders, mortgage companies and debt collection agencies.

The GOP filibuster also hands fresh ammunition to the White House as it pursues a populist political strategy ahead of the 2012 election, portraying Republicans on the side of Wall Street and Democrats on the side of Main Street.

"Democrats fought to pass reform last year to protect against the greed of big banks. Without a director, the Consumer Financial Protection Bureau doesn't have the tools it needs to get the job done, and it's shocking that despite the economic crash in our rearview mirror, it's easy to look back and see what happened because of Wall Street greed," Senate Majority Leader Harry Reid (D-Nev.) said on the floor before the vote.

"Republicans, in spite of that, would leave consumers without a watchdog to guard against the greed of Wall Street."

Republicans made clear they had no qualms with Cordray himself, and they insisted they back "strong and effective oversight." But they were peeved that Obama had ignored concerns they raised seven months ago about the structure and scope of the agency, created by the Wall Street reform law known as Dodd-Frank.

Republicans have vowed to filibuster any CFPB nominee Obama sends to the Senate until their demands are met. They've specifically called for replacing the agency head with a board of directors, subjecting the bureau to the congressional appropriations process, and allowing more checks on CFPB rules.

"The president knew about these concerns months ago, and he chose to dismiss them. And now he's suddenly making a push to confirm his nominee — because it fits into some picture he wants to paint about who the good guys and the bad guys are in Washington," said Senate Minority Leader Mitch McConnell (R-Ky.). "So, once again Democrats are using the Senate floor this week to stage a little political theater. They're setting up a vote they know will fail so they can act shocked about it later.

"This is what passes for leadership at the White House right now," he added.

Other Republicans argued that reforming the bureau would make it more accountable to the public.

"If you believe regulators never fail, then the current structure of the bureau is just fine. Yet, we all know that regulators do fail and that their failures harm consumers," said Alabama Sen. Richard Shelby, the top Republican on the Senate Banking Committee.

But after the vote, New York Sen. Chuck Schumer, the No. 3 Senate Democrat, vowed his party would "never sign on any attempts to permanently gut this agency."

Obama, though, was more diplomatic, urging Republicans to try change the law by passing legislation — a futile exercise given that Democrats control the Senate.

Bart Naylor, a financial policy advocate for Public Citizen, said the White House media campaign over the past week—-while not generating a Senate confirmation—-drew clear lines for voters that Republicans are standing up for Wall Street.

"The push is trying to make it clear that the CFPB is an institution that's attempting to resolve one of the main problems that led to the financial crash," he said. "This vote shows what side the members of Congress are on."

Republican calls to change the governance of the new bureau—replacing a single director with a board and making it depend on congressional funding—would slow down the pace and effectiveness of a new agency that could penalize banks and other financial companies for abusive practices, Naylor said.

"The problem in banking regulation is politics has entered the dynamic and dilutes strong enforcement," he said.

Read more: http://www.politico....l#ixzz1fycBGHUv

[slim 1,533]

What the heck does an attorney general have to do with consumer finance?

Oh, that's right, we're talking about a community organizer turned president here too. Whoops. My bad.

[Mr. Big Dog 10,747]

But wait, Chuck made clear that the GOP has no way of stopping anything they don't like in the Senate. Was Chuck wrong?

[slim 1,533]

Politicians will deal.

[Obama 2012 1,714]

the agency is a joke and a waste of tax payer dollars.

I'm sure Cordray is going to enjoy his six figures and insider trading information.

[Ban Hammer 13,760]

But wait, Chuck made clear that the GOP has no way of stopping anything they don't like in the Senate. Was Chuck wrong?

i'm never wrong - just occasionally mistaken.