Senate Republicans Say No Deal on CFPB

Senate Republicans said this morning they will continue to block a vote on President Obama’s choice to head the Consumer Financial Protection Bureau until the president agrees to change the structure of the fledgling agency.

Idaho Sen. Michael Crapo said at the opening of a confirmation hearing on Cordray the Republican caucus will continue to fight for institution of a multiperson board, instead of a single director, to head the new consumer agency, and for congressional oversight of its spending, estimated to be more than $300 million last year.

“(And) I continue to believe the recess appointment (that seated Cordray) was unconstitutional,” said the Republican leader of the banking committee, referring to a federal court ruling that other recess appointments made by President Obama last year were illegal because there was no action Senate recess at the time.

Democrat Sen. Sherrod Brown, from Cordray’s home state of Ohio, called on his Republican colleagues to lift their objections and allow a vote on Cordray, even if they object to the structure of the new consumer agency. The CFBP is the law of the land but some of us would like to void the law just because they don’t like the agency,” said Brown.

Cordray’s nomination is almost certain to win the endorsement of the banking committee, as soon as this afternoon, just because the Democrats have a majority of the members. But the continued Republican opposition is enough to effectively filibuster, or block, a vote on Cordray. That’s because a filibuster takes 40 votes in the Senate and the Republicans have 45 seats.