In a show of deference to Wall Street banks and the financial industry, the Senate voted 53–45 to block President Obama’s nominee, Richard Cordray, to head the new Consumer Financial Protection Bureau (CFPB). NCLR (National Council of La Raza) has supported the goals behind the creation of the CFPB from the beginning and is disappointed in the Senate for once again letting powerful special interests stand in the way of progress.
“The U.S. Senate failed to deliver on its promise to serve the American public,” said Janis Bowdler, Director of the Wealth-Building Policy Project at NCLR. “By failing to confirm Rich Cordray, a well-qualified nominee with bipartisan support from consumers, civil rights organizations, and business leaders, 45 senators chose to leave Latinos and all Americans vulnerable to the tricks of unregulated and deceptive lenders.”
The CFPB is an independent agency charged with the mission of protecting consumers in the financial marketplace by ensuring that markets for consumer financial products and services are fair, transparent, and competitive.
“The Latino community has not forgotten about the devious tactics that some in the consumer finance industry have resorted to in order to make exorbitant profits,” added Bowdler. “Those senators who voted against Cordray’s nomination know that without a director, the CFPB lacks full authority to supervise payday lenders, private student lenders, non-bank mortgage lenders, debt collection reporting agencies or other non-banks. Refusing to confirm Cordray is a blatant move to weaken the power of this agency, which was created to protect the American people from fraud and deception.”
Despite the setback today, NCLR will continue to advocate on behalf of consumers, to fight powerful Wall Street lobbyists, and to push for the confirmation of Richard Cordray as director of the CFPB.