Structure Of Consumer Financial Protection Bureau Comes Under Fire From Republicans Even After They Had Input On Its Formation During Development Of Dodd-Frank

Monday, February 04, 2013 07:57
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Structure Of Consumer Financial Protection Bureau Comes Under Fire From Republicans Even After They Had Input On Its Formation During Development Of Dodd-Frank

Tags: Congress | Dodd-Frank | regulation

Republicans are digging in their heels, refusing to allow anyone from any party to be named head of the Consumer Financial Protection Bureau (CFPB) until the agency’s infrastructure is overhauled.

 
The Bureau is another mandate of the Dodd-Frank Act and its infrastructure has been an issue since before it was formally created.

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The CFPB is currently insulated from Congressional oversight. All but two Congressional Republicans signed a letter to President Obama stating they would oppose any appointment to head the agency in its current state.
 
The current head, Richard Cordray, was appointed in a swath of appointments by the president than have now been thrown into question by a recent appeals court. Cordray’s appointment was the result of Republicans’ refusal at that time to allow his nomination to come up.
 
The court ruling raises speculation that Republicans may be able to push through their reforms.
 
They want to replace the director’s position with a bipartisan board that would subject the agency to the Congressional appropriation process.
 
Democrats point out that this battle was already fought during the formation of the Dodd-Frank Act, which Republicans participated in. They say the call for reform is political, nothing more.
 
Regardless, the bureau's role in regulation is likely to be a significant one so this is a development you will want to watch.

 

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