Cordray to lead Consumer Financial Protection

Attorney General Richard Cordray, right, speaks about the rise of consumer fraud complaints rising statewide at the Main Branch of the Toledo-Lucas County Public Library in this March 8, 2010, file photo. Looking on are Toledo Mayor Mike Bell, center, and Richard Eppstein, president of the local Better Business Bureau. THE BLADE Enlarge | Photo Reprints

President Barack Obama will nominate former Ohio Attorney General Richard Cordray to head a powerful new consumer protection agency, White House officials said.

At a White House event Monday, Obama will announce his choice of Cordray, 52, who is currently serving as director of enforcement for the new agency called the Consumer Financial Protection Bureau.

By picking Cordray, Obama hopes to avoid a bruising Senate confirmation battle that would have occurred had he selected Elizabeth Warren, the Harvard law professor who came up with the idea and ultimately helped to set up the agency.

"Richard Cordray has spent his career advocating for middle class families, from his tenure as Ohio's Attorney General, to his most recent role as heading up the enforcement division at the (bureau) and looking out for ordinary people in our financial system," Obama said.

Sen. Sherrod Brown, D-Ohio, called the selection of Cordray a "great move. There's no question of Rich's qualifications."

Brown said that Warren will remain in the White House as an advisor to the president.

He predicted the Senate will likely confirm Cordray for the post "unless they get to be hyper-partisan. My only fear is Republicans don't think we should have consumer protection rules."

The Cordray selection places pressure on Sen. Rob Portman, R-Ohio, who has voiced objections about some of the powers of a new agency. Brown said, "I fully expect Rob Portman to support Rich Cordray."

Obama acknowledged Warren's leadership in a statement announcing Cordray's nomination, thanking Warren "not only for her extraordinary work standing up the new agency over the past year, but also for her many years of impassioned leadership, and her fierce defense of a simple idea: ordinary people deserve to be treated fairly and honestly in their financial dealings.

"This agency was Elizabeth's idea, and through sheer force of will, intelligence, and a bottomless well of energy, she has made, and will continue to make, a profound and positive difference for our country," he said.

Warren, who hand-picked Cordray to serve in the agency shortly after his loss in last November's elections, expressed support for his selection.

"Rich has always had my strong support because he is tough and he is smart-and that's exactly the combination this new agency needs," she said. "He was one of the first senior leaders I recruited for the agency, and his work and commitment have made it clear that he will make a stellar director."

If confirmed by the Senate, Cordray, a Grove City native and former "Jeopardy" champ, will lead a new, independent agency tasked with acting as a watchdog for American consumers. The bureau's mission is to prevent abusive and deceptive financial practices and ensure that consumers have the information they need to make the financial choices that are best for them.

Though the bureau is set to open its doors Thursday, it's been active in the year since its creation, pushing initiatives aimed at making credit card providers simplify their forms so consumers can better understand the fees and costs associated with credit; working to simplify the forms that consumers receive when they shop for a mortgage so they have easy-to-understand information that helps them compare different mortgage offers and find the one that's best for them; and policing abuses in consumer financial products like credit cards and mortgages and for making sure people have the information they need to make the decisions that are best for them.

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