WASHINGTON – U.S. Senator Orrin Hatch (R-Utah), Ranking Member of the Senate Finance Committee, today opposed the nomination of Richard Cordray to head to the massive new Consumer Financial Protection Bureau (CFPB). The CFPB was created in last year’s Dodd-Frank financial regulatory law. Hatch has continually expressed concerns with the lack of accountability and oversight of the CFPB, and earlier this year joined 43 of his colleagues in writing to President Obama to state that unless those concerns were addressed, he would oppose the nomination of anyone to head the agency (to read this letter, click HERE).
“My opposition to Richard Cordray’s nomination has nothing to do with him personally, but rather to the lack of accountability of the position and the new agency as it’s currently structured,” Hatch said. “The Dodd-Frank law is another example of the type of government overregulation that’s standing in the way of economic growth. Frankly, that’s why repealing it is part of the jobs plan I’ve put forward. The law gives Washington bureaucrats an enormous amount of unchecked power over what type of investments people can make and stifles economic investment at a time of near double digit unemployment.”
Hatch has asked for three commonsense reforms to enhance consumer protection while ensuring accountability to the Utahns:
- Establish a board of directors to oversee the bureau (as the president proposed at the outset of the financial reform debate);
- Make the bureau subject to the congressional appropriations process (rather than continuing to fund the bureau through the Federal Reserve) to ensure that it is accountable and does not engage in wasteful and unnecessary spending;
- Allow bank regulators (such as the FDIC, the Fed, and the Office of the Comptroller of the Currency) to prevent the bureau from endangering the safety and soundness of financial institutions.
Hatch also published an op-ed on National Review Online today, in which he wrote that “The new consumer protection bureaucracy has almost free rein to impose whatever costly regulations it desires, without attention even to whether financial service providers would be driven to failure as a result.” (To read the entire op-ed, click HERE).