Cordray: US Consumer Agency to Target Shadow Banks

Thursday, 05 Jan 2012 12:10 PM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
In his first speech as head of the Consumer Financial Protection Bureau, Richard Cordray said his agency will immediately begin overseeing lenders outside the banking industry, and will take a tough stance against any financial players that break the law.

In a controversial move President Barack Obama on Wednesday installed Cordray as the CFPB's first director through a recess appointment after Senate Republicans blocked a vote on his nomination last month.

The bureau, created by the 2010 Dodd-Frank financial oversight law, is charged with policing consumer markets for products such as credit cards and home loans.

"The consumer bureau will make clear that there are real consequences to breaking the law," Cordray said in remarks prepared for delivery on Thursday at the Brookings Institution, a Washington think-tank.

Cordray is a former Ohio attorney general who was not afraid to file legal challenges against banks, including Bank of America Corp.

Democrats have heralded the bureau, which opened its doors in July, as a way to protect consumers from abusive lending practices like the type of home loans that were made in the years leading into the 2007-2009 financial crisis.

Republicans, who demanded structural changes to the agency before they would help confirm a permanent director, have charged the agency is a virtually unchecked government body that will hurt lending and put small banks out of business.

Cordray said the agency has already taken over some enforcement investigations from other agencies and has started some of its own.

"Some may be resolved through cooperative efforts to correct problems," he said. "Others may require enforcement actions to stop illegal behavior."

Under the Dodd-Frank law, without a director in place the CFPB could supervise banks but it could not regulate the "shadow banking" industry such as payday lenders, mortgage servicers and private student lenders.

Cordray said the bureau would begin taking on these responsibilities as of Thursday now that he is sitting in the director's chair.

"We must establish clear standards of conduct so that all financial providers play by the rules," Cordray said.

© 2014 Thomson/Reuters. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Mali's Islamists Withdraw Cease-Fire Pledge

Friday, 04 Jan 2013 13:06 PM

Tens of thousands of Fatah supporters rallied in the Hamas stronghold of Gaza on Friday for the first time since they we . . .

Fmr. CIA Director Hayden: Iran Nuclear Crisis Gets 'Scarier'

Tuesday, 17 Jul 2012 18:11 PM

 . . .

Join Fmr. CIA Director for Special Iran Briefing, Assess the Danger

Friday, 13 Jul 2012 12:27 PM

 . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved