Richard Cordray testifies before the House Oversight and Government Reform Committee Subcommittee in Washington (Yuri Gripas/Reuters)
Fast on the heels of President Obama's recess appointment of Richard Cordray to the Consumer Financial Protection Bureau, Rep. Patrick McHenry (R-NC)
demanded Cordray's appearance before his House oversight subcommittee (once the House got back from vacation, which the
GOP insisted they weren't actually on for purposes of criticizing the nomination). That hearing was held Tuesday.
While McHenry was snide and hostile toward Cordray, there was far less of McHenry's patented nastiness on display in this hearing. Maybe it's because Rep. McHenry is a bit of a sexist asshole, and just had a basic problem with Elizabeth Warren, or maybe it's because the political climate has changed just enough to make Republicans think standing up so blatantly for the banks against the people isn't such a smart thing to do. At any rate, a far more subdued hearing than previous, and a stellar performance from Cordray.
He started off on a smart, strong note. From his prepared remarks:
My vision for the Consumer Bureau is that it will work to make consumer financial markets operate fairly in order to protect consumers, support honest businesses, and play a crucial role in helping to safeguard the overall economy.
First, the Consumer Bureau will benefit consumers by clarifying the prices and risks of consumer financial products and services. When consumers know the true costs, benefits, and risks of competing products, they will be better able to make good decisions for themselves and their families.[...]
Second, the Consumer Bureau will benefit honest businesses by leveling the playing field and ensuring that financial institutions play by the same set of rules. In the run-up to the financial crisis, nonbank firms generally were not subject to the federal supervision that applied to banks. Some of these unsupervised entities led a race to the bottom in lending standards that hurt responsible businesses, including community banks and credit unions, and greatly harmed consumers. With a Director now in place, the Bureau can work to level the playing field on which our nation’s financial institutions will innovate and compete.
Honest businesses want to compete in a market where buyers understand the terms of the deal and can compare possible alternatives. These firms work to win market share based on fair competition and excellent customer service, not through deception or fraud. The Consumer Bureau can help responsible businesses by ensuring that everyone competing in the marketplace follows the same set of fair and reasonable rules.
That's very smart framing on Cordray's part, highlighting the GOP's favorite hobby horse, business. It's also happens to be true.
The Republican members did press Cordray on two fronts: transparency of the organization and answerability to Congress (one of the Democratic members noted that there had been something like a dozen hearings on the CFPB in the House, so accountability for Congress hardly seemed like a valid concern); and how Cordray got there, the recess appointment. Cordray could hardly speak to the second issue, since he didn't appoint himself, and on the first proved so forthcoming and diplomatic in his answers, he quickly defused the Republican attacks, and this was actually a relatively substantive hearing.
It doesn't mean that there won't be plenty of times Cordray is hauled up to Congress in the GOP's ongoing effort to try to gum up the works the Obama administration as much as possible in an election year. But Cordray's first appearance was a success for him, and for the CFPB.