Republicans Set to Block Obama’s CFPB Nomination – Again

Unless major changes are made to the agency, Senate Republicans plan to block any nominee to head the Consumer Financial Protection Bureau. 

A letter sent to President Obama Friday indicated that 43 Republican senators will refuse approval unless the watchdog agency undergoes major restructuring. The move comes on the heels of Obama’s re-nomination of Richard Cordray, seen at right, as the CFPB’s director, a year after the president made a recess appointment that was seen by many as controversial after comparable Republican disapproval.

Cordray’s position, scheduled to run through the end of the year, is under new examination as many feel the move could be unlawful. Last week, three recess appointments made the same day to the National Labor Relations Board were deemed unconstitutional. Because of that, many think Cordray’s appointment is on track for a similar outcome.

Even before his nomination – or the CFPB got off the ground – the GOP set out to block any agency head nominee. Republicans want the bureau run by a bipartisan, five-member committee, not a single director. They also want its funding to be controlled by congressional appropriators as opposed to the Federal Reserve, which is its current revenue stream – which also means its funding levels cannot be changed by Congress. In addition, the GOP wants other watchdogs to have more power to reject CFPB rules that may threaten the safety and soundness of financial institutions.