This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Obama, GOP May be Ready to Deal on CFPB

NEW YORK ( TheStreet) -- This time around President Obama and Senate Republicans may play a little nicer when it comes to the Consumer Financial Protection Bureau (CFPB).

Richard Cordray's renomination might provide an opportunity for both parties in Congress to address GOP concerns about the CFPB's governance, according to Kevin Petrasic, a partner in the Global Banking and Payments Systems practice of Paul Hastings in Washington. "There has been suggestion that there may be some sort of deal where Cordray would get confirmed, and a bill might take under consideration a three-to-five member commission to replace the director and have him become the first chairman," Petrasic says.

President Obama on Thursday nominated Cordray to serve a full term as the director of the CFPB, a year after the president made a controversial recess appointment of Cordray to get the new agency up and running.

The CFPB was created as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act, signed into law by the president in July 2010.

After Senate Republicans blocked the nomination of Cordray -- formerly the state attorney general for Ohio - for six months, with Senator minority leader Senate Minority Leader Mitch McConnell (R-Ky.) saying in November 2011 that the president hadn't "done a thing" to address his party's concerns over the new agency's "lack of transparency of accountability," President Obama in January made a recess appointment of Cordray as the new CFPB director.

The recess appointment was controversial, because the Senate was technically in session, on a pro forma basis, because the House of Representatives -- controlled then, as now, by Republicans -- was having someone bang the gavel every three days to keep the entire U.S. Congress in session.

The president on Thursday said that there was "absolutely no excuse" for the Senate not to confirm Cordray quickly to serve a full term.

Cordray on Thursday said that said that "For more than a year, we have been focused on making consumer finance markets work better for the American people," and that the CFPB was approaching "this work with open minds, open ears, and great determination."

While House Financial Services Committee Chairman Jeb Hensarling (R-Texas) was quite gracious on Thursday in congratulating Mary Jo White on her nomination to be the new chairman of the Securities and Exchange Commission, his comments on Cordray's renomination of Cordray took a darker tone:

"President Obama's alleged recess appointment of Mr. Cordray last year was, at best, a highly controversial and legally questionable maneuver. The Dodd-Frank Act places vast, unprecedented and unchecked power completely in the hands of a single person. The CFPB director has the power to decide whether American families can obtain a mortgage, get a car loan or even get a credit card."

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,827.75 +12.81 0.07%
S&P 500 2,072.83 +5.80 0.28%
NASDAQ 4,787.3170 +29.0650 0.61%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs