CLARKSVILLE, Tenn. – President Barack Obama announced he will appoint Richard Cordray, Ohio’s former attorney general, to the position of director for the new Consumer Financial Protection Bureau during the Congressional recess.

The announcement of the appointment has met with a cacophony of opposition from Washington Republicans. Senator Bob Corker R-TN, stated in a press release that the President’s appointment undermines efforts to bring accountability and balance to the bureau.

“Instead of working in a productive way with Congress, the administration has chosen to undermine any attempt at bringing accountability and balance to the bureau,” said Corker.

The Tennessee Senator, like many Congressional Republicans argues that the new agency will operate unfettered and unaccountable in its current state. Deputy Treasury Secretary Neal Wolin explained that the claim the agency had no accountability was baseless.

According to Wolin, the CFPB must consult with other bank regulators before it issues rules, has to assess the effect of its rules on small businesses and can have its rules overturned by the Financial Stability Oversight Council.

Congressional Republicans are demanding the agency receive funding through congressionally appropriated dollars. Wolin warns this could add a political motivation to regulation.

“The reason for that is we want to make sure that our bank regulators are free of political influence," said Wolin.

Appointment to the position has been opposed by Congressional Republicans who argue the agency is not held to account for its decisions. In response to the GOP opposition, Congressional Democrats claim the Republicans are attempting to cater to banks while ignoring the need for regulation to protect consumers.

"Cordray and consumer protection are being blocked simply because Republicans want to protect Wall Street," said Sen. Robert Menendez, D-N.J.

Congressional Republicans have taken many steps to prevent any new regulation to the banking industry. In 2011 alone, committees in the GOP-led House have voted to cut $200 million from the White House request for the Securities and Exchange Commission, a commission that holds a major enforcement role. The House has also voted to hold the Commodity Futures Trading Commission, which oversees derivatives, to $171 million. The $171 million is less than a third of what President Obama sought for funding.

According to www.responsiblelending.org the CFPB would consolidate and streamline existing functions to reduce regulatory burden. The organization goes on to say that the unintended consequences of current regulation have come from a lack of adequate regulation. The threat posed by inaction is well established.

The newly nominated Cordray stated on the CFPB website, “I am honored by this opportunity to continue my work on behalf of consumers. And I am energized by the responsibilities and challenges facing the Bureau.”

The director echoed the administration’s beliefs and continued on to say, “The importance of this day has less to do with me personally and much more to do with you – and the millions of individuals and families across the country who access consumer financial markets every day to participate in our economy and to pursue their dreams and aspirations. That’s because now, with a Director, the CFPB can exercise its full authorities – with respect to both banks and nonbanks – to help those markets operate fairly, transparently, and competitively.”



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