Richard Cordray to Step Down as CFPB Director By the End of November

Richard Cordray, director of the Consumer Financial Protection Bureau (CFPB), announced he would be stepping down from his position by the end of November. Prior to joining the Bureau, Cordray served as Ohio’s Attorney General and is notably the first director of the CFPB. 

Cordray revealed his resignation to employees through an email that reportedly reads:

As I have said many times, but feel just as much today as I ever have, it has been a joy of my life to have the opportunity to serve our country as the first director of the Consumer Bureau by working alongside all of you here. Together we have made a real and lasting difference that has improved people’s lives, notably: $12 billion in relief recovered for nearly 30 million consumers; stronger safeguards against irresponsible mortgage practices that caused the financial crisis and hurt millions of Americans; giving people a voice by handling over 1.3 million complaints that led to problems getting fixed for vast numbers of individuals, and creating new ways to bring financial education to the public so that people can take more control over their economic lives. None of this could have happened without all of us being dedicated to pull together in supporting and protecting people and making every consumer count. I will always be immensely proud of you and what you have done.

House Financial Services Committee Chairman, Jeb Hensarling (R-TX), issued the following statement in response to Cordray’s announcement that he will resign as head of the CFPB:

“We are long overdue for new leadership at the CFPB, a rogue agency that has done more to hurt consumers than help them.  The CFPB tramples on the fundamental economic rights of American citizens, taking away their choices and opportunities.  The extreme overregulation it imposes on our economy leads to higher costs and less access to financial products and services, particularly for Americans with lower and middle incomes.  It has routinely denied market participants their due process rights.  All this harm is made even worse by the fact that the CFPB is structurally unconstitutional and completely unaccountable to the American people.

 

“The resignation of the Bureau’s director is an excellent opportunity to enact desperately needed reforms. The Bureau has an important mission.  Properly designed and led, it can truly protect consumers by ensuring they have access to competitive markets that are vigorously policed for fraud.  That’s the best way to provide consumers with more affordable choices for the financial products and services they want and need.  Americans deserve the opportunity to choose the checking account they want, the mortgage they want and the credit card they want.  I look forward to working with President Trump’s choice for CFPB director to protect consumers.”

U.S. Senator, Elizabeth Warren (D-MA) also issued a statement about Cordray’s departure:

At the Consumer Financial Protection Bureau, Rich Cordray forced the biggest financial institutions to return $12 billion directly to the people they cheated. He held big banks accountable. He is a dedicated public servant and a tireless watchdog for American consumers – and he will be missed. The new Director of the CFPB must be someone with a track record of protecting consumers and holding financial firms responsible when they cheat people. This is no place for another Trump-appointed industry hack.”

Although there has been speculation that he has plans to run for Ohio Governor, Cordray has made no mention of his future plans. Earlier this month, sources revealed to CNBC that President Donald Trump was planning to fire Cordray but was afraid of making him a hero for his political adversaries.

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