Fears today's decision is just the beginning of an end-run around Congress
Jul 17 2011
WASHINGTON, D.C. – U.S. Senator Jerry Moran (R-Kan.), member of the Senate Banking Committee and Ranking Member of the Senate Committee on Appropriations Financial Services and General Government Subcommittee, released the following statement on President Obama’s intent to nominate Richard Cordray to be the Director of the Consumer Financial Protection Bureau:
“Today’s announcement, nearly 12 months after the President created this new agency, does nothing to increase transparency or accountability,” Sen. Moran said. “I along with 43 of my Senate colleagues have made our intentions quite clear, but the Administration has yet to respond to our May 5th letter calling for the Bureau's leadership structure to be strengthened. I fear today’s decision is just the beginning of an end-run around Congress. I would urge the President to put the best interests of consumers ahead of politics and seriously consider my proposal.”
Sen. Moran, along with 43 other Senators, has notified President Obama that he will not confirm any nominee – regardless of party affiliation – to be the Director of the new Consumer Financial Protection Bureau (CFPB) absent structural changes that will make the Bureau accountable to the American people.
Sen. Moran has introduced legislation to reform the structure of the CFPB. The Responsible Consumer Financial Protection Regulations Act of 2011, S. 737, would replace the single CFPB Director with a Senate-confirmed multi-person commission – similar to the leadership structure of the Securities and Exchange Commission (SEC), Commodity Futures Trade Commission (CFTC) and Federal Trade Commission (FTC). It would also subject the CFPB to the regular appropriations process like most federal agencies.
The Dodd-Frank Act currently allows the CFPB director to set his or her annual budget by withdrawing funds directly from the Federal Reserve, rather than going through the annual Congressional appropriations process like most independent agencies. Additionally, Dodd-Frank denies the Federal Reserve any authority to deny or adjust the CFPB director’s request. Sen. Moran’s legislation would subject the CFPB to the annual appropriations process, authorizing funding levels for FY 2011 and 2012 equal to the president’s estimate of need.
Click here to view the full text of S. 737, the Responsible Consumer Financial Protection Regulations Act of 2011.