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President Obama appoints “wall-street watchdog” to agency

02.02.12

JANUARY 2012 Scranton/Wilkes-Barre/Hazleton edition of The Union News

President Obama appoints “wall-street watchdog” to agency

BY PAUL TUCKER
THEUNIONNEWSSWB@AOL.COM

REGION, January 5th- President Obama on Janaury 4th appointed former Ohio Attorney General Richard Cordray to head the Consumer Financial Protection Bureau, using the recess appointment after Senate Republicans blocked his nomination.

Tom McMahon, Executive Director of Americans United for Change, a left-leaning Washington, DC based political action organization, stated Mr. Obama did what Republicans in the Senate refused to do, show leadership on preventing another Wall-Street created economic crisis by appointing Mr. Cordray to head the agency.

The United States Consumer Financial Protection Bureau (CFPB) is the federal agency that holds primary responsibility for regulating consumer protection in the United States.

The bureau began operations on July 21st, 2011. It was founded as a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which passed during the 111th United States Congress in response to the late–2000’s recession and financial crisis.

The bureau was set up by Elizabeth Warren, who was passed over for diretor in favor of Richard Cordray. Mr. Cordray’s confirmation was delayed by Republicans in the United State Senate. The bureau has become the “focus of bitter fighting” between the administration of President Obama on one side and “Republicans and banking lobbyists on the other.”

On July 17th, Mr. Cordray was selected over Ms. Warren as the head of the entire CFPB. However, his nomination was immediately in jeopardy because 44 Senate Republicans had previously vowed to derail any nominee in order to encourage a decentralized structure to the organization. Senate Republicans has also shown a pattern of refusing to consider regulatory agency nominees, purportedly as a method of budget cutting.

“At every twist and turn Republicans have attempted delay, defund, or dismantle the Wall Street reforms enacted under President Obama that created the new watchdog agency Cordray will head. Republicans have chosen instead to stand with Wall Street companies and their well-paid lobbyists who have spent as many millions to underwine the new law, and done everything to avoid being held accountable for crashing the economy,” stated Mr. McMahon.

The American for Limited Government (ALG) a right-wing Washington, DC based free-market reform action organization, condemned the recess appointment of Mr. Cordray.

“The appointment of Richard Cordray to the Consumer Financial Protection Bureau, and all acts he may take while in his post, are not worth the paper they are printed on. Barack Obama has rammed through a phony ‘recess’ appointment when there is no recess, and now he borders on being a tyrant. Obama cannot constitutionally pretend a recess into existence, and yet that is exactly what he has done. This has never been attempted before,” stated ALG President Bill Wilson.

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