Cordray Pledges to Go Easy
Saying that credit unions and small banks “had very little, really nothing to do with causing the financial crisis,” Consumer Financial Protection Bureau Director Richard Cordray renewed his commitment to ensuring they don’t face unnecessary additional regulatory burdens.
Cordray told the Senate Banking Committee at a Jan. 31 hearing that credit unions and community banks are successful business models and are the institutions most responsive to the needs of consumers. Therefore, his bureau wants to ensure that its regulations to protect consumers don’t hurt those entities, he added.
Cordray will have responsibility for protecting the safety and soundness of banks as a result of his membership on the FDIC board.
Sen. Mike Johanns (R-Neb.) said he has doubts that the actions that the CFPB takes during Cordray’s tenure will be considered valid because of the constitutionally questionable nature of President Obama’s recess appointment of Cordray earlier this month.