Obama nominates Ohio's ex-attorney general to lead consumer bureau
President Obama nominated Richard Cordray to run the consumer bureau on Monday.
WASHINGTON (CNNMoney) -- President Obama nominated Richard Cordray on Monday to head the new Consumer Financial Protection Bureau, an independent agency set to launch on Thursday.
"I look forward to working with Richard Cordray as this bureau stands up on behalf of consumers all across the country," Obama said Monday in an address from the Rose Garden.
Cordray, 52, works as the chief enforcement officer for the Consumer Financial Protection Bureau (CFPB) in Washington. But Cordray made a name for himself among consumer groups and Ohio Democrats in politics.
As Ohio's attorney general, Cordray filed lawsuits against the big banks -- accusing them of hiding losses from employee pension funds and improperly foreclosing on homeowners.
"He is a former Democratic state attorney general who was known for aggressively going after banks," said Jaret Seiberg, a policy analyst for MF Global Inc.'s Washington Research Group. "He is not a compromise candidate."
Indeed, many congressional watchers don't expect that Cordray will get the chance to lead the consumer bureau.
Senate Republicans have reiterated threats to block confirmation of any director to run the bureau without "significant changes" to the bureau's structure, which would weaken the bureau's powers. Lawmakers, so far, have also managed to avoid going into congressional recess -- preventing the president from making a temporary appointment to the post.
"Until the governing structure of the CFPB is reformed, so that the agency and its leadership have accountability for the way they write and enforce rules and spend federal dollars, I don't think it's appropriate to confirm anyone as director," said Sen. Bob Corker, a Tennessee Republican, in a statement.
Cordray won his position as Ohio's attorney general in a special election in 2008. In his brief tenure there, he filed a high-profile lawsuit on behalf of Ohio pension funds against Bank of America (BOA). He accused the bank of hiding losses of Merrill Lynch prior to buying the investment firm, and for awarding big bonuses to bank executives.
He also sued Ally Financial. The lawsuit sought to prevent the bank from foreclosing on borrowers in Ohio, because of their use of robo-signers accused of cutting corners in verifying foreclosure documents.
Last fall -- just days after Cordray lost his bid to keep his job as Ohio's attorney general -- Elizabeth Warren recruited him to help her set up and run the consumer bureau.
"Rich will be a strong leader for this agency," Warren said in a statement on the White House blog. "He has a proven track record of fighting for families during his time as head of the CFPB enforcement division, as Attorney General of Ohio, and throughout his career."
Consumer groups and progressive groups had been lobbying the White House to appoint Warren as the new bureau's director. But after the White House announced Cordray's nomination Sunday, most groups quickly released statements supporting the President's pick and praising Cordray's record as attorney general.
"Richard Cordray certainly has the requisite knowledge of the financial services marketplace, and demonstrated consumer protection track record to be qualified to be the CFPB's first director," said Travis Plunkett, lobbyist for the Consumer Federation of America.
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