The Battle over the CFPB Continues

There’s been plenty of attention given to the official rollout of the CFPB and the President’s nomination of former Ohio Attorney General Richard Cordray to serve as its first director. What’s very apparent is that the start-up of the CFPB is going to be complicated by politics. This should not come as a surprise but it is disappointing since I believe the merits of the case for creating the agency as prescribed by statute are quite strong.

I thought I would highlight two pieces that offer interesting arguments for understanding the battles ahead. The first is a piece by Jeff Sovern, the premier lawyer/blogger at the Consumer Law and Policy blog, explaining why the House bill to “improve” the bill would cripple it. The second is a NYTimes editorial which argues that the White House can stand on the sidelines and will need to enter the fray to defend the CFPB and its choice of Cordray.

And for those interested in exactly what’s in the law that established the CFPB, I recommend reading or re-reading this paper by Tim Fernholz that we published last October after the bill became the law of the land. The paper describes the CFPB’s authorities, duties, and organizational structure as well as the set of transition issues to address. It’s a good resource for those interested in the details.