Richard Cordray is stepping down from his post as head of the Consumer Financial Protection Bureau, stoking speculation that he may soon join the field of Democratic candidates running for OH governor. Some Congressional Republicans had urged Trump to fire Cordray.
Earlier this month, Trump signed legislation repealing a rule issued by the CFPB in July. I will always be immensely proud of you and what you have done. But Warren, who was an outspoken critic of Wall Street - as she is now - never made it through Senate confirmation.
Cordray will step aside by the end of this month. His term does not end until next summer, but to run for OH governor he would have to declare his candidacy by February. If President Trump opts to scale down the efforts of the CFPB, the effects could be felt in legal sectors across the country, as banks may be afforded greater safe haven from alleged criminal acts. In recent years, the CFPB has been at the center of some of the most bitter partisan fights over post-crisis financial rules.
He was the first confirmed head of the independent agency established by Dodd-Frank, the landmark banking law created after the 2008 economic crisis that was designed to prevent future meltdowns. It has extracted billions in fines from big banks, including $100 million from Wells Fargo a year ago for opening millions of sham accounts that customers didn't ask for.
But the agency has been controversial among Republicans since its inception. Critics complain that the bureau has made it more hard for people to get a mortgage loan and has overstepped its power to regulate some industries, including auto loans. GOP Rep. Jeb Hensarling, the chair of the House Financial Services Committee, said Cordray's resignation was a long time coming.
"We need to make sure the next leader of the CFPB builds on the agency's good work rather than opposing it", Warren said at a press conference. "The extreme over-regulation it imposes on our economy leads to higher costs and less access to financial products and services, particularly for Americans with lower and middle incomes". One new rule would require payday and auto title lenders to determine whether a borrower can afford to repay loans in full within 30 days and limit the number of times a lender can debit a borrower's account without being reauthorized to do so. "Under his outstanding leadership, the Consumer Bureau has made the financial marketplace stronger and fairer for hardworking Americans across the country".
The group hopes Trump will appoint a replacement who "will listen to customers rather than special interests", he said. "A change in leadership at the CFPB presents an opportunity for the bureau and the federal government to strike a collaborative stance toward common-sense regulatory reform that protects the interests of homeowners".
For months now there have been rumors swirling that Cordray, who was appointed to the CFPB by President Barack Obama, will make a run for OH governor. His term does not end until next summer, but to run he would have to declare his candidacy by February. Cordray, the CFPB's first and only director thus far, leaves amid speculation that he may launch a bid for governor of his home state. "He held big banks accountable".
"None of this could have happened without all of us being dedicated to pull together in supporting and protecting people and making every consumer count", Cordray said. Elizabeth Warren, D-Mass., who helped established the bureau.
Sen. Elizabeth Warren, a Democrat from MA, said the new director "must be someone with a track record of protecting consumers and holding financial firms responsible when they cheat people". Appointed by former President Barack Obama, his status has been in question ever since Mr. Trump's election win.