WASHINGTON (10/4/11)--The Senate Banking Committee is expected to vote on the nomination of Consumer Financial Protection Bureau (CFPB) director Richard Cordray this Thursday. His nomination would move on to the full Senate following committee approval.
Credit Union National Association (CUNA) Senior Vice President of Legislative Affairs Ryan Donovan said CUNA expects Cordrays nomination to be approved by the committee, but we are unsure of his prospects after that. Donovan recently noted that Cordray's nomination "faces several obstacles," adding that "over 40 senators have said they will not vote to confirm any CFPB nominee unless changes to the CFPB are enacted."
Among the suggested changes are increasing CFPB leadership from a single director to a five-member commission, reforming some operational rules, and adjusting the voting threshold needed for the Financial Stability Oversight Council (FSOC) to set aside or stay a CFPB issued rule to a simple majority.
Expanding the FSOC's review authority of CFPB rules has also been proposed. These changes passed the House by a 241-173 vote in July, but the Senate prospects for these changes are in doubt.
CUNA has encouraged Cordray to "consider ways in which the bureau can help minimize regulatory requirements for credit unions and other financial institutions" and has also encouraged the CFPB to establish an Office of Regulatory Burden Monitoring to help the agency "track, consider, and help mitigate the cumulative regulatory burden under which credit unions and others must operate."