WASHINGTON The Senate this evening finally voted to confirm Richard Cordray to a five-year term as director of the Consumer Financial Protection Bureau, 17 months after President Obama bypassed intransigent Senate Republicans and appointed Cordray to an abbreviated recess appointment.
This afternoon’s vote came only after the Senate went all the way to the brink of the nuclear option, a threat by the majority Senate Democrats to eliminate the minority Republicans’ ability to filibuster, or block, presidential appointments with a minority of just 41 of the Senate’s 100 votes. The threat severally jeopardized Senate comity and threatened to spread enmity even more through a divided Senate.
Cordray won confirmation by a 66 to 34 vote, otherwise, his recess appointment was scheduled to expire at year-end.
Senate Republicans, who opposed creation of the new agency as part of the 2010 Dodd-Frank Act, insisted on blocking the Cordray nomination, or that of any other candidate to head the agency until Senate Democrats agreed to change the structure of the agency and give Congress greater control over its spending.
But just as both parties approached the edge, leaders agreed on a compromise that would finally put Corday’s nomination to a vote and have President Obama withdraw two nominations to the National Labor Relations Board who Republicans opposed.
Credit unions also opposed creation of the new consumer agency, reasoning that NCUA and other regulators already have the authority to monitor credit unions for compliance with consumer laws. Still Cordray and the CFPB have carefully cultivated the credit union lobby since its inception last year as true allies in seeking out wrongdoing for non-regulated entities and have worked closely with CUNA and NAFCU in developing new regulations on mortgages, credit cards and wire transfers and carving out exemptions for credit unions and banks.
NAFCU conceded as much after today’s vote. “NAFCU congratulates Director Cordray on his confirmation and looks forward to continue working with him and his staff,” said Dan Berger, chief lobbyist for NAFCU. “Even though NAFCU does not believe credit unions should be under the purview of the CFPB, we have maintained a productive, working relationship with him and his staff.”
