The White House has recruited 37 state attorneys general to urge Senate Republicans to stop blocking the confirmation of the first Consumer Financial Protection Bureau director.
In a letter to Senate leaders, the state AGs stress that Richard Cordray is well qualified to lead the CFPB and the former Ohio AG has been an "honest broker" when it comes to protecting consumers and working with the financial industry.
"Using his good judgment and inherent sense of fairness, Mr. Cordray worked to create a better and more vibrant marketplace," the Oct. 18 letter says.
Cordray is currently chief of enforcement at the new bureau that opened its doors on July 22.
Ten Republican AGs signed the letter, including Utah attorney general Mark Shurtleff who spoke to reporters during a conference call Tuesday afternoon.
The Utah AG stressed that an ongoing collaborative effort between the attorneys general and CFPB is needed to enforce an eventual settlement with the biggest banks and correct their foreclosure practices. He added that CFPB's assistance during the settlement negotiations is "very important" to the AGs.
But 44 Republican senators have united to block the President's choice to run the new bureau until it is restructured and turned into a five-member commission.
National Economic Council director Brian Deese signaled that the White House has no intention to give in to Republicans demands for restructuring to the CFPB.
“The CFPB is not unique within our regulatory structure," Deese said. "This is simply no reason," he said, to block Cordray's confirmation and keep the bureau from fully exercising its powers to protect consumers from unfair and abusive financial practices.
Shurtleff noted that state AGs sued Household Finance, Ameriquest and Countrywide during the subprime lending spree with little help from the federal government.
However, problems in the mortgage sector "continue," he said, and AGs need to work collaboratively with the CFPB and hopefully with Cordray as its director.
"We are very pleased to support him and hope that the Senate will confirm him," the Utah AG said.
