The Senate Banking Committee has approved the nomination of Richard Cordray to be the first director of the Consumer Financial Protection Bureau (CFPB), but challenges remain.

The former Ohio Attorney General's nomination to the top post in the CFPB was approved in the committee by a vote of 12-10, a vote strictly on party lines with all Democrats approving and all Republicans voting against.

However, the nomination still faces a steep roadblock in the full Senate as Republicans have vowed to block the confirmation of any nomination to the post until changes to the agencies leadership structure and budgeting process are changed.  With the current makeup in the Senate, Democrats appear to not have sufficient votes to overcome a Republican filibuster.

The desired changes by Republicans include changing the leadership from a single director to a five-person commission and placing the funding of the agency under the appropriations process which would provide additional Congressional oversight.  The agency is currently funded from a percentage of the Federal Reverse budget mandated by the Dodd-Frank Act.

Both Cordray's nomination and the full powers of the agency remain in flux until this battle is resolved.  Under the Dodd-Frank act, the CFPB doesn't gain some of its full regulatory authority until a director is in place.