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Sen. Richard Shelby on Why He’s Blocking the New Consumer Czar’s Confirmation

Richard Cordray, President Obama’s pick to lead the Consumer Financial Protection Bureau, won approval from the Senate Banking Committee last week on a party-line vote. His confirmation to run the new agency faces fierce opposition from Republicans, who have vowed to block Senate approval until reforms are made to the agency.

Sen. Richard Shelby (R-AL) is leading those calls for reform. As the ranking Republican on the Banking Committee, Shelby has maintained a hard line with Obama and Democrats on Cordray’s confirmation.

In an interview at The Heritage Foundation this week, Shelby criticized Obama for failing to respond to the GOP’s suggested reforms for the CFPB. As a result, he encouraged Republican leaders to block Cordray and limit Obama’s ability to make a recess appointment.

“Forty-four of us have written a letter to the president and asked for three changes,” Shelby said. “We haven’t heard from the president. Maybe he’s off campaigning. … Until we hear from him, I don’t believe we’re going to confirm anyone.”

He also added: “I think it would be devastating if we let [Obama] make a recess appointment, but that’s the call of the leadership.”

The three reforms include creating a board rather than a single czar to run the agency, subjecting the CFPB to the congressional appropriations process, and making sure it considers impact of new rules on the safety and soundness of financial institutions.

In addition to fighting against the CFPB, Shelby has also proposed legislation to reform Dodd-Frank. He also addressed the recent decision by Bank of America to impose a $5 fee on debit-card transactions, a result of the Durbin Amendment to Dodd-Frank.

COMMENTS

  • ohiohistorian

    It may not improve Washington, DC, but his absence from Ohio will CERTAINLY improve Ohio. he has never ran a business, has never hired or fired employees, never met a payroll or done any of the things that would help him act in the best interest of consumers. He has been a lifelong Democrat shill.

  • Raven

    Great. So Obama will wait for a recess and then appoint this guy and that’ll be the end of it. Ever so wonderful.

    • csinate

      you and your friends might become Second Amendment Warriors if you just knew about us.
      www.secondamendmentwarrior.com

    • kestrel

      They are preventing recess appointments.
      I’m sure I’m not the only person whose vision (h/t Pajamas Media) of Eric Holder stewing in the Leavenworth, Kansas federal penitentiary is marred by this:
      http://www.frugal-cafe.com/public_html/frugal-blog/frugal-cafe-blogzone/2010/12/30/revolting-new-year-obamas-holiday-recess-appointment-of-james-cole-for-dojs-national-security-team-expect-islamic-911-terrorism-to-be-treated-like-other-domestic-crimes/

  • popdaddy

    I thought the Republicans were in a position to prevent any recess periods by the Senate.
    We are a year out for the election needed to save America. I cannot accept the notion, with all the tired old GOP Senators, no one has the parliamentary skills to prevent Dingy Harry from declaring a recess period in the next 13 months!

  • daniel22

    But what else would be new? From what democrats have said recently they want an autocracy anyway. Next I am waiting for an emergency and a president for life. After all Obama wants to see what he can get done by bypassing Congress.

    • csinate

      The governor of NC has already suggested that the election be postponed for two years. Others have jumped on that bandwagon. And, Obama and his Czars will stay on forever. Rome was the most democrtic country in the world until their citizens allowed it to slip into a dictatorship. Wake up!
      If the elections are cancelled it will be revolution time. I’ll be waiting for you at the bridge.

  • flchristyb

    You know that this, so called, protest is going to morph into something more violent. They have already sent threatening letters to NY legislators, and the administration is just fanning the flames and egging them on. This is exactly what Obummer has been waiting for, to foment violence and impose Martial Law, cancel elections and appoint himself President for life. Kinda like his good pal Hugo Chavez, the only difference is that I SERIOUSLY doubt our military will back him and he has to face some 40 or 50 million well armed American citizens….

  • kestrel

    This CFPB is another disaster in the making. In gratefulness for your work on this, I will do my best to send you an R Senator next year to replace an ObamaDemSen who has a dismal 1% Club for Growth score.

    Thank you also for making the video with Rob. It is well worth watching in spite of perhaps appearing, at a glance, to be just a couple of boring guys. In fact, it quite strikingly contrasts a professional yet humble elected person making very reasonable requests on behalf of nearly half the U.S. Senate, vs. a president who will not even respond to their letters.

    I am not done with the links, but you are definitely right about this too: “American job creators are under siege from the Dodd-Frank Act.?