Sen. Jerry Moran (R-Kan.), a member of the Senate Committee on Banking, Housing and Urban Affairs, Friday reintroduced legislation to replace Consumer Financial Protection Bureau Director Richard Cordray with a five-person commission.
"Allowing a single unelected official to define their own jurisdiction and regulate vast segments of our economy without accountability or restraint is irresponsible regardless of political party," Moran said in a release.
"This common-sense legislation brings a variety of perspectives to the bureau and gives Congress the oversight authority required for such a powerful agency. We stand ready to work with the president to make certain the CFPB’s mission of consumer protection is both effective and accountable,” Moran said.
The Responsible Consumer Financial Protection Regulations Act of 2013 would reform the CFPB to a structure similar to that of the SEC. S. 205 would also subject the CFPB to Senate appropriations process and establish a safety and soundness check that would ensure excessive regulations do not cause financial institutions to fail.
The Dodd-Frank Act currently allows the CFPB director to set his or her annual budget by withdrawing funds directly from the Federal Reserve, rather than going through the annual Congressional appropriations process. Dodd-Frank also denies the Federal Reserve any authority to deny or adjust the CFPB director’s request.
Moran’s bill would subject the CFPB to the annual appropriations process.
Credit union trade associations have said they would support such reforms; however, both CUNA and NAFCU have stressed that they have no issues with Cordray himself.
The legislation, originally introduced in 2011, would enact reforms requested by Moran and 42 Senate colleagues in a letter sent to President Obama on Friday, stating they will continue to oppose the confirmation of any CFPB nominee until key changes are made to ensure accountability and transparency at the bureau.
On Jan. 24, Obama nominated Cordray for a full five-year term.