WASHINGTON — It was nearly two weeks ago that the Obama administration recess-appointed Richard Cordray to lead the Consumer Financial Protection Bureau. But Tuesday was perhaps Cordray's first day in the lunch cafeteria at bank regulators' school.
Sitting next to other regulators with longer Washington resumes, Cordray debuted as an FDIC board member. Under Dodd-Frank, the CFPB director replaces the head of the now-defunct Office of Thrift Supervision on the board, and Cordray fittingly sat just about where former Acting OTS Director John Bowman once did.
Despite speculation about legal challenges to his hiring, or over whether his lack of Senate confirmation hampers the CFPB's role, Tuesday's meeting produced no fireworks. At the outset, Acting FDIC Chairman Martin Gruenberg gave Cordray a warm welcome. The board proceeded to approve the previous meeting's minutes. (Cordray, not having been present for last month's meeting, abstained.)
Later, Cordray joined his new cohorts in a unanimous vote to propose Dodd-Frank stress test requirements for large FDIC-supervised banks. Praising the ability of multiple agencies to work collaboratively on Dodd-Frank implementation, Cordray said the coordination for new stress test rules is similar to "how we hope to do" the CFPB's "work as well."
Following the board's official actions, Cordray read prepared remarks about what the bureau can bring to the FDIC's deliberations.
"Like the FDIC, the CFPB was created in reaction to a crisis in the American financial system to correct market failures that harmed an overwhelming number of American consumers and businesses," he said. "Among other things, we both share the common goal of supporting confidence in our financial institutions."
He added that the CFPB's work "complements that of the FDIC."
"Our constant contact with consumers and our data-driven research will help us identify consumer risk. And our supervision function will supplement the supervisory role of the FDIC and the other banking agencies and help provide a more complete picture of a bank's operations. All of these activities fit together. They should be good for consumers and for the overall economy."
But the biggest highlight may have come at the very end of the open board meeting, where Cordray flashed some humor - poking fun at his newness on the job.
Once Cordray finished his planned remarks, Gruenberg recognized Christopher Spoth, a 32-year FDIC veteran and one of the agency's most senior supervisors, who will be retiring. All three board members present besides Cordray, having been familiar with Spoth, offered kind words.
When it was Cordray's turn, his timing could not have been better.
"I don't know you, Chris," said the new CFPB director, sparking loud laughter from the room. Yet Cordray added that he looked forward to one of his "descendants" having the chance to congratulate a 32-year veteran.
