Republicans obstruct improvements to Americans' financial security
Senate Republicans have blocked President Barack Obama's nomination of Richard Cordray to head the Consumer Financial Protection Bureau (CFPB.) The vote was 53-45 - with one senator voting "present" - falling short of the 60 votes needed to break a Republican filibuster.
Richard Cordray was Attorney General of Ohio, Treasurer of Ohio, and Solicitor General of Ohio. From all accounts, he is an outstandingly competent candidate to head the CFPB. And, talk about bright, he was a five-time "Jeopardy!" champion.
Ayear ago, the President fought fierce lobbying from the financial industry and signed into law the Dodd-FrankWall Street Reformand Consumer Protection Act.
The new law put in place reforms that reduce excessive risk taking onWallStreet.
The law establishes the strongest consumer protections in our history, and creates the Consumer FinancialProtection Bureau. TheCFPBis charged withensuringthat financialservice providerscompeteon thebasisofthe services theyprovideandnoton unfair, deceptive, andhidden fees and harmful practices.
The CFPB cannot exercise its full authorities or make good on the consumer protection goals in the law unless a director is in place.
Brian Deese, Deputy Director of the National Economic Council, indicated, "Non-bank financial companies like payday lenders, mortgage lenders, mortgage servicers, debt collectors, and credit reporting agencies play an incredibly important part in the lives of American families...The non-bank sector is one where we have seen, in the past, some of the most...predatory lending practices in our financial system."
These destructive and non-transparent practices led to the financial melt-down of 2008.
Withouta CFPBDirector,
Americanswillnotbe protectedfromfalling preytomanyofthe damaging practicesthat contributedtothe worstfinancialcrisissincetheGreat Depression.
The CFPBsinabilityto exerciseitsfull
authoritywhileit awaitsaDirector negatively affectsour economy and the security of our financialsystem.
Without a director, the agency designed to shield consumers from the excesses behind the 2008 financial crisis cannot operate at full throttle.
President Obama has responded, "We are not giving up on this...We are not going to allow politics as usual on Capital Hill to stand in the way of American consumers being protected from unscrupulous financial operators."
A question to the Republicans who are blocking Richard Cordray and consumer protections - Whom are you protecting?
Looks to me as if you are in the wrong place and on the wrong side.
Richard O. Schwab was formerly associate head of school, and middle school head, Cincinnati Country Day School. He is currently neighborhood team leader, Glendale Organizing For America Community Team (www.gofact.blogspot.com)
Richard O. Schwab
