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Obama administration takes Cordray confirmation fight to the public



Since it first opened its doors in July, the Consumer Financial Protection Bureau has been unable to exercise its full authority as promulgated under Dodd-Frank. Without a confirmed director, the CFPB cannot extend its oversight to non-bank consumer lenders, arguably the most essential to its intended role.

The White House's greatest obstacle has been trying to convince a block of 44 Senate Republicans who have written a letter pledging to filibuster the confirmation of Obama's nominee, former Ohio Attorney General, Richard Cordray. Despite Cordray's alarming record as Ohio's AG, more specifically his contracts with private attorneys on a contingency-fee basis to handle the state's lawsuits, Senate Republicans refuse to confirm Cordray because of concerns about the CFPB's leadership structure, authority and funding.

In response, the Obama administration has decided to take its message to the people via media, public appearances and an information campaign targeting seven states in particular: Alaska, Indiana, Iowa, Maine, Nevada, Tennessee and Utah. The goal is to lobby the Senators deemed most likely to change their minds by encouraging public pressure from constituents.

Simultaneously, state AGs and other officials have already joined the effort to gain the 60 votes necessary for a vote that may come as early as Thursday. Even Republican Attorney General Mark Shurtleff of Utah has come forward to support Cordray in this effort.

Coincidentally, both Democrat Cordray and Republican Shurtleff are among the eight "leaders" of state AGs recognized for their unsavory alliances with trial lawyers. The White House seeks to frame this confirmation debate as a choice between either protecting the financial industry or the middle class however, Cordray's record as Ohio's AG and the broad authority delegated to the CFPB director and State AGs by Dodd-Frank may paint a different picture.

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Isaac Gorodetski
Project Manager,
Center for Legal Policy at the
Manhattan Institute
igorodetski@manhattan-institute.org

Katherine Lazarski
Press Officer,
Manhattan Institute
klazarski@manhattan-institute.org

 

Published by the Manhattan Institute

The Manhattan Insitute's Center for Legal Policy.