Senate Stops Consumer Nominee

by
December 9, 2011
By  Jr.

WASHINGTON — The Senate on Thursday blocked President Obama’s nominee to head the Consumer Financial Protection Bureau, as filibustering Republicans who oppose the powers of the new agency successfully challenged one of the administration’s main responses to the financial crisis.

The nominee, Richard Cordray, was rejected after Democrats failed to achieve the 60 votes they needed to move his nomination forward. The vote was 53 yes, 45 no.

President Obama left open the option of a recess appointment, although Republicans have thwarted that tactic recently by staying in rump sessions.

“We are not giving up on this,” he said. “We are going to keep on going at it. We are not going to allow politics as usual on Capitol Hill to stand in the way of American consumers’ being protected.”

Senator Mitch McConnell of Kentucky, the Republican leader, said his party had made clear for months that it would not approve a leader for the watchdog consumer agency until the law that established it was amended.

Until three changes are made, he said, “We won’t support a nominee for this bureau — regardless of who the president is.”

One of those changes would put a board in charge of overseeing the bureau instead of the director, abolishing the post. Others would subject the agency to the Congressional appropriations process, giving lawmakers more sway over its policies, and would give other financial regulatory agencies a check on its rules.

Senator Sherrod Brown of Ohio, a Democrat, said that the opponents’ “first loyalty is to Wall Street banks.”

The agency can accomplish part of its mission, the protection of consumers from unscrupulous lending practices, without having a director in place. But some of its new powers are vested by law in the director, so it could not expand into realms like the regulation of payday lenders and other nonbank financial businesses.

The power struggle between the financial sector and its check-cashing, card-carrying customers has developed into one of the fault lines along which the political parties are playing out their own rivalries as the election year arrives.

Previous opposition from Republicans led to the withdrawal of Elizabeth Warren from consideration for the post. She is a Harvard law professor who was the driving force behind the agency’s creation and is now a Democratic candidate for the United States Senate in Massachusetts.

To read more, visit: http://www.nytimes.com/2011/12/09/business/senate-blocks-obama-choice-for-consumer-panel.html

No comments yet - you can be the first!

Leave a Reply

Your email address will not be published. Required fields are marked *

Keep the Fake News Media in check.

Don’t let the MSM censor your news as America becomes Great Again. Over 500,000 Americans receive our daily dose of life, liberty and pursuit of happiness along with Breaking News direct to their inbox—and you can too. Sign up to receive news and views from The 1776Coalition!

We know how important your privacy is and your information is SAFE with us. We’ll never sell
your email address and you can unsubscribe at any time directly from your inbox.
View our full privacy policy.