The White House confirmed Sunday that former Ohio Attorney General Richard Cordray will be nominated by President Obama to head the new Consumer Financial Protection Bureau. In doing so Obama passes over Harvard Professor Elizabeth Warren, the outspoken consumer advocate, Wall Street critic and White House special advisor responsible for developing the new agency. The President spoke of his nominee Cordray in a recent statement:
"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 CFPB and looking out for ordinary people in our financial system,"
Many liberals had hoped that the President would select Warren to head the CFPB, despite their belief that Republicans would adamantly oppose Warren's appointment. Democratic Ranking Member of the House Financial Services Committee Rep. Barney Frank told Reuters:
"I have strongly supported Elizabeth Warren and she would be my first choice for the position. I regret that she has fallen victim to such wholly unjustified political attacks. The President has made the second best appointment possible."
Sen. Charles Schumer said to PolitickerNY that in passing over Warren; "the President was just facing reality when he said that he couldn't nominate her because she never would have been approved."
The appointment requires Senate confirmation to put Cordray at the head of a new federal agency that aims to restrict unfair, deceptive or abusive credit practices, promote financial education, and investigate consumer complaints. Senate Majority Leader Mitch McConnell recently reiterated the sentiment expressed by 44 Republican senators in May, who announced they would not vote to approve any candidate to run the bureau without changes to the agency's structure.
An event at the White House is planned for Monday where Obama will discuss his pick.
The Wall Street Journal reported Sunday that those who know Warren say she wanted the director post. PolitickerNY has suggested that Warren "is said to be interested in running against Massachusetts Republican Scott Brown."