Senate Committee on Banking, Housing, and Urban Affairs' Testimonies of SEC Chair and CFPB Director Nominees

Mary Jo White, nominee for the SEC Chairman, and Richard Cordray, nominee for CFPB Director, each delivered testimony before the U.S. Senate Committee on Banking, Housing, and Urban Affairs.

In her testimony, Ms. White discussed the current and future objectives of the SEC. According to Ms. White, the SEC should perform a rigorous analysis with respect to rulemaking. She stated she believes that the SEC should assess, from the outset, the economic impacts of contemplated rulemaking in connection with its rules but should do so in a manner that does not undermine the SEC's ability to carry out its mandate to protect investors and the capital markets. Second, White stated her belief that there should be more aggressive enforcement. White also expressed her view that the SEC should have increasing expertise on today's high-speed, high-tech and dispersed marketplace. According to Ms. White, high-frequency trading, complex trading algorithms, dark pools and intricate new order types raise various concerns. Among other areas of intended regulatory focus Ms White cited: money market funds, private fund advisers, credit rating and clearing agencies, and appropriate regulations governing the conduct of broker-dealers and investment advisers with retail investors.

Mr. Cordray's testimony emphasized the CFPB's enforcement mission. He asserted that law enforcement that is evenhanded, fair, and reasonable not only protects consumers, but also supports what he calls the honest businesses. According to Cordray, these rules protect people who are shopping for a loan from being saddled with something they cannot afford. The rules also protect existing homeowners froM& their mortgage servicers. Among other topics he discussed: the changes Congress made in the CARD Act and the Financial Aid Shopping Sheet.

See: Mary Jo White's testimony; Richard Cordray's testimony.See also: Video of the Hearing (links to Senate Banking website).