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President Obama Slated to Renominate Richard Cordray as CFPB Director

JAN 24, 2013 11:38am ET

President Obama is going to try one more time to get the Senate to confirm Richard Cordray to be the first director of the Consumer Financial Protection Bureau.

The White House said the president will renominate Cordray at a press event Thursday afternoon.

Last year, Senate Republicans successfully blocked his confirmation on the grounds that the CFPB, which was established by the Dodd-Frank Act, has unprecedented powers for a federal agency and needs be restructured.

The president countered and made a recess appointment so the former Ohio attorney general could serve as the acting CFPB director and get the fledgling agency up and running. The GOP, led by Senate Banking Committee Republicans, is expected to filibuster Cordray’s nomination again.

But the president does not seem to be deterred. “In just the past year, Cordray and the CFPB have made remarkable progress in strengthening consumer protection, putting new rules into place to protect homeowners,” according to a statement by the White House.

However, the GOP claims that Cordray’s recess appointment was unconstitutional. And House Financial Services Committee chairman Jeb Hensarling, R-Texas, claims the regulations are legally questionable.

“Rather than bringing greater certainty to the marketplace, every decision made by the CFPB will therefore be under a cloud. All could be overturned because the CFPB director’s appointment is possibly unconstitutional, unlawful or both,” Hensarling said.

Late last year, there were rumors that Cordray would leave the CFPB and go back to Ohio to run for the governor’s office.

If Cordray is not confirmed, his term as the acting CFPB director will expire at the end of this year.