Categorized | Senate News Briefing

Republicans Demand Accountability On Dodd-Frank, Oppose Obama’s Czar To Lead New Agency

With the White House in the midst of a campaign to push Richard Cordray, the president’s nominee to head the unaccountable agency created by the Dodd-Frank bill, Senate Majority Leader Harry Reid (D-NV) has filed cloture on his nomination, making a cloture vote likely Thursday or Friday.


But as The Hill reports, “Senate Republicans offered a public show of unity Tuesday against former Ohio Attorney General Richard Cordray’s nomination . . . . It’s also unclear whether the White House can count on all of the 53 senators who caucus with Democrats.”


Speaking on the floor yesterday, Senate Republican Leader Mitch McConnell explained the basic problem with this appointment: “[T]he Director of the CFPB, by design, is set to lead one of the least accountable and most powerful agencies in Washington. What we’re saying is no single person who’s unaccountable to the American people should have that much power. We are asking for the same structure as the SEC, the CFTC, and the FDIC, the FTC, the NLRB, and the Consumer Product Safety Commission — the same structure we use anytime we give unelected bureaucrats new powers that need to be checked to protect against abuse. … We don’t need any more unelected, unaccountable czars in Washington.”


Forty-five GOP senators have signed a letter to President Obama saying they won’t confirm any director for the CFPB until some key reforms of the agency are put in place. Among the reforms Republicans call for in their letter are to “Establish a board of directors to oversee the Consumer Financial Protection Bureau. . . . Subject the Consumer Financial Protection Bureau to the [Congressional] appropriations process. . . . [And e]stablish a safety-and-soundness check for the prudential regulators.”


The Hill adds, “Republicans on Tuesday insisted they would block Cordray’s confirmation in the procedural vote unless the White House agrees to significant changes to the agency’s framework. The unity was expressed at a GOP news conference, where several senators from states the White House targeted in pushing for Cordray lined up to explain their opposition. GOP Sens. Mike Lee (Utah), Orrin Hatch (Utah), Bob Corker (Tenn.), Dick Lugar (Ind.) and Susan Collins (Maine) attended the public event. . . . Allowing the bureau to be funded by the Fed gives it a ‘funding stream that’s completely unique in government, entirely without a check from the American people … making it one of the least transparent agencies in Washington,’ Senate GOP Leader Mitch McConnell (Ky.) said at the news conference. . . . Senate Banking Committee ranking member Richard Shelby (R-Ala.) said the changes are needed ‘to prevent this from being a completely runaway, unaccountable agency, which is exactly the way it was crafted to be.’ . . . ‘It makes no sense for a structure to be created, no matter how noble the cause may be, where there is simply no accountability, no oversight for the budget,’ Collins said.”


As Sen. Shelby said back in May, “This is about accountability. The Bureau, as currently structured, lacks any semblance of the checks and balances inherent in the Constitution.  Everyone supports consumer protection, but we should never entrust a single person with this much power and public money.  We are simply asking the President to support common sense reforms that provide the accountability absent in the current structure.”

About Tom White

Tom is a US Navy Veteran, owns an Insurance Agency and is currently an IT Manager for a Virginia Distributor. He has been published in American Thinker, currently writes for the Richmond Examiner as well as Virginia Right! Blog. Tom lives in Hanover County, Va and is involved in politics at every level and is a Recovering Republican who has finally had enough of the War on Conservatives in progress with the Leadership of the GOP on a National Level.

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Tom White Says:

Nothing is more conservative than a republican wanting to get their majority back. And nothing is more liberal than a republican WITH a majority.

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