Senate Committee Approves Cordray Nomination for CFPB Leader

Voting along party lines, the nomination for Richard Cordray to lead the CFPB passed today by the Senate Banking Committee.

Although he has made it further in the process than Elizabeth Warren, it’s not yet a victory for the former Ohio Attorney General. He now faces an official Senate vote. Today, the 10 Republicans on the committee voted against the nomination while 12 Democrats voted in support.

In July, President Obama nominated Cordray for the position to lead the CFPB, the agency created by the Dodd-Frank Wall Street Reform and Consumer Protection Act to police lending.

Without a director, financiers are unsure how the CFPB will implement its broad powers to oversee the Truth in Lending Act, the Equal Credit Opportunity Act, and the Fair Credit Reporting Act.

Republicans have made it clear that they don’t think the power of the CFPB should be placed in the hands of just one director, and a nominee shouldn’t be considered until reforms are adopted to lessen the power of the agency.