Ex-Ohio attorney general Cordray picked to lead consumer agency
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Richard Cordray
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WASHINGTON -- President Barack Obama said Sunday that he would nominate Richard Cordray, the former attorney general of Ohio, to lead the new Consumer Financial Protection Bureau, passing over Elizabeth Warren, the Harvard law professor who was the driving force behind the agency's creation.
Mr. Cordray came to national attention for his aggressive investigations of mortgage foreclosure practices while he was attorney general. He had already joined the watchdog agency, which starts formal operations on Thursday, as the leader of its enforcement division.
"Richard Cordray has spent his career advocating for middle-class families, from his tenure as Ohio's attorney general to his most recent role as heading up the enforcement division at the CFPB and looking out for ordinary people in our financial system," Mr. Obama said in a written statement. He will formally announce the nomination today.
The decision to pass over Ms. Warren -- who conceived the bureau, championed its creation and orchestrated its establishment for the last year as a White House adviser -- reflects political realities.
Her candidacy was passionately supported by liberal members of Congress and consumer advocacy groups. But she never won the full support of the president or his senior advisers, particularly Treasury Secretary Timothy Geithner, in part because of her independence and outspokenness, which at times put her at odds with the administration.
Also, since last year, Mr. Obama has been trying to rebuild relations with the business community after the fights early in his term over health care and financial regulations. And Republicans have vowed to block her nomination because they say that her criticisms of the banking industry showed a lack of fairness.
Putting a director in place is critical because the agency will not gain the full measure of its powers until the Senate confirms a nominee. The agency will be able to supervise the compliance of banks with existing laws, but the Dodd-Frank financial legislation that created the agency dictates that it cannot write new rules or supervise other financial companies without a director.
First Published July 18, 2011 12:00 am
