Richard Corday, President Obama's choice to run the ConsumerFinancial Protection Bureau, said Tuesday that credit unions andbanks that follow the rules will benefit from regulations thatpunish bad actors.

“Better regulations help honest businesses,'' he said duringtestimony at the confirmation hearing on his nomination held by theSenate Banking Committee.

Cordray also noted that the bureau's efforts to combine thedisclosure forms required by the Truth in Lending Act and theReal Estate Settlement Procedures Act would make things easier forlenders and give consumers more information, and was anexample of a regulation that is a “win win.''

He said credit unions and community banks would be able tobetter compete when the CFPB regulates nonbank institutions becausethis would level the playing field. He noted that manynonbanks helped cause the financial crisis because they “made loansthat were destined to fail.''

Several Democrats noted that the bureau won't be able toregulate nonbanks until a director has been confirmed.

In response to a question from Sen., Bob Corker (R-Tenn.),Cordray, a former Ohio attorney general who was defeated forreelection last year, said he had “no plans to run for anypolitical office.''

And he promised that the bureau won't make decisions based onpolitical considerations because politics has “no place,” in thebureau's work.

Cordray noted that he had good relations with the banking andcredit union trade associations in Ohio.

The Ohio Bankers League endorsed his nomination. Ohio Credit Union League President PaulMercer stopped short of endorsing Cordray but wrote Cordray when hewas nominated that “I am confident that, given the opportunity, youwill diligently represent the mission and Consumer FinancialProtection Bureau's mission and purpose as its director.”

Ohio Credit Union League General Counsel John Kozlowski was atthe hearing and Corday introduced him to the senators before histestimony.

No vote has been scheduled but Senate Republicans have vowed to block any nomination without structural changes to thebureau's governance. The GOP-controlled House already has passed such legislation.