A group of 44 republican senators signed a letter sent to President Obama yesterday stating they would not support any nominee to direct the Consumer Financial Protection Bureau until its structure is reconsidered.
“As presently organized, far too much power will be vested in the CFPB director without any effective checks and balances. Accordingly, we will not support the consideration of any nominee, regardless of party affiliation, to be the CFPB director until the structure of the Consumer Financial Protection Bureau is reformed,” the letter states.
A single director will wield far too much power, the senators write, which will adversely impact American consumers.
The letter comes following a House Financial Services subcommittee vote in favor of three bills that aim to restrict the power of the fledgling CFPB. In addition to the leadership structure, which the letter recommends should include a board of directors rather than a single director, the letter urges two other points of action: Subject the Bureau to the Congressional appropriations process; and establish a safety-and-soundness check for the prudential financial regulators, who oversee the safety and soundness of financial institutions.
House Financial Services Committee Chairman Spencer Bachus also made a statement in support of changing the leadership structure of the CFPB this week.
The discussion comes during a time when there has been wide speculation as to the president’s decision to nominate a director of the bureau, scheduled to launch on July 21. While the White House has been quiet about the potential director, the possible nomination of Special Advisor Elizabeth Warren has been a recent topic of conversation.
View the letter to President Obama.
Written by Elizabeth Ecker
