House Financial Services Committee Refuses to Hear Testimony from Richard Cordray

The Chairman of the House Financial Services Committee announced that the Committee cannot legally accept testimony from CFPB Director Richard Cordray with respect to the Consumer Financial Protection Bureau's ("CFPB") semi-annual report until he is validly appointed as the bureau's director.

To date, the Senate has not confirmed any nominee to be the CFPB Director. While President Obama named Cordray to the position by recess appointment on January 4, 2012, a federal appeals court ruling on January 25, 2013 found that a similar process used to name individuals to the National Labor Relations Board by recess appointment was invalid.

In a Monday letter to Meredith Fuchs, the CFPB's associate director and general counsel, Chairman Hensarling said the House Financial Services Committee "stands ready to accept the testimony of the director of the CFPB on the semi-annual report as soon as an individual validly holds this position. Until then, the committee intends to continue to conduct rigorous oversight of the CFPB's activities, and will expect the CFPB's cooperation in those efforts, including making other employees available to testify at committee hearings and responding fully to committee requests for documents and information."

Chairman Hensarling also sent a letter on Monday to Mr. Cordray, noting the federal appeals court ruling and requirements under Dodd-Frank which specify the CFPB director must be appointed with the advice and consent of the Senate.

Click here to learn more (links externally to House Financial Services website).Related News: "Chairman Hensarling Questions the Legality of CFPB Funding (with Cammarn Comment)" (March 12, 2013) and "Senate Committee on Banking, Housing, and Urban Affairs' Testimonies of SEC Chair and CFPB Director Nominees" (March 12, 2013).