Earlier today, the U.S. Senate's Committee on Banking, Housing and Urban Affairs narrowly approved Richard Cordray's nomination as the first Director of the Bureau of Consumer Financial Protection. All twelve Democrats on the Committee voted in favor of the nomination, and all ten Republicans on the Committee voted to oppose it.
Cordray's nomination now proceeds to the full Senate, where its future remains uncertain. While most Democrats have voiced strong support for his nomination, over 40 Republicans--enough to filibuster the nomination--have vowed to oppose Cordray and any other nominee until Republicans' demands to reform the Bureau's structure are met.
As Secretary of the Treasury Timothy F. Geithner reminded the Committee in his testimony today, the Bureau will continue to lack enforcement powers over nonbank financial institutions, including consumer finance companies, mortgage brokers, payday lenders and private student loan lenders, until a Director is confirmed and assumes the office.