Senate Republicans and President Barack Obama will probably remain deadlocked over the Consumer Financial Protection Bureau until the Supreme Court rules on the president’s recess appointment of Richard Cordray as head of the agency, a key GOP senator said today.
Sen. Richard Selby, R-Ala., the Senate Banking Committee’s senior Republican member, told Financial Advisor he foresees no movement in the impasse until the court rules on the appointment’s constitutionality.
The two parties have locked horns on the bureau since it was created as part of the Dodd-Frank Act in 2010. Senate Republicans have refused to give Obama the votes necessary to approve a head of the consumer agency until a board is instituted to govern the bureau. Republicans also want Congress to control the bureau’s budget and bank regulators given the power to veto CFPB regulations.
Obama has refused to give in on any of the demands and named Cordray the bureau’s director in January 2012 without Senate confirmation. The Supreme Court is expected to rule on a constitutional challenge of the appointment later this year.
The CFBP, meanwhile, is exerting its influence in areas such as mortgages, student loans and credit cards. Last week, the agency urged Congress and the Securities and Exchange Commission to stiffen requirements and disclosures for financial advisor certifications aimed at showing expertise for seniors.