Published: Wed, November 15, 2017
Money | By Armando Alvarado

Richard Cordray Stepping Down As Head Of US Consumer Protection Agency

Richard Cordray Stepping Down As Head Of US Consumer Protection Agency

Richard Cordray is quitting his presidentially appointed job as director of the Consumer Financial protection Bureau, according to an email he sent staff. The CFPB has made it more hard for people to get a mortgage loan and overstepped its power to regulate some industries, including auto loans, critics say. Cordray, who was an Obama recess appointment, was confirmed to a five-year term as the agency's director in July 2013. It regulates the way banks and other financial companies interact with consumers, policing everything from pay day loans to mortgages. "I am confident that you will continue to move forward, nurture this institution we have built together, and maintain its essential value to the American people".

Cordray has been mulling a run for governor of OH where he once served as attorney general.

"I trust that new leadership will see that value also and work to preserve it - perhaps in different ways than before but desiring, as I have done, to serve in ways that benefit and strengthen our economy and our country", Cordray added.

Massachusetts Sen. Elizabeth Warren, the Democrat who is credited with conceiving and setting up the CFPB, has said its actions were necessary to protect ordinary Americans in the wake of the worst economic downturn since the Great Depression.

In a tweet, Warren warned the White House to appoint someone who could hold major financial firms accountable. The rule was opposed by the Treasury and the Office of the Comptroller of the Currency, both of which are run by Trump appointees.

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News of Cordray's departure quickly sparked speculation that President Donald Trump might not name a successor as part of an effort to keep the regulatory agency hobbled.

"The Administration will announce an acting director and the President's choice to replace Mr. Cordray at the appropriate time", said Raj Shah, deputy press secretary. It comes less than a month after the agency suffered a stunning defeat when Congress voted to block one of its most aggressive regulations allowing consumers to sue their banks.

In October, he announced the completion of a top CFPB priority: a rule aimed at cracking down on payday lenders.

Almost a year into Donald Trump's term, Richard Cordray, a fierce public advocate appointed by Barack Obama, hasn't yet been removed as the head of the Consumer Financial Protection Bureau.

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