Cordray, who in the past had expressed interest in running for governor, had been regarded as one of the leading Democratic candidates in three years.
But under questioning from Sen. Bob Corker, R-Tenn., Cordray said he understood that “the work of a federal independent agency and law enforcement work, in particular, must be completely absolved of politics. The two do not mix. And that’s how I would approach my job.’’
Although members of both political parties indicated that Cordray was qualified to become director of the new Consumer Financial Protection Bureau, Tuesday’s hearing produced a series of testy partisan exchanges between Democrats and Republicans.
Forty-four Senate Republicans, including Rob Portman of Ohio, have vowed to block any nominee for director until the White House agrees to modify the power of the new agency, which will regulate a wide array of consumer financial products, such as home mortgages and credit card offers.
In particular, Senate Republicans want the director to be replaced by a five-member board and they insist that Congress have the power to approve the agency’s budget every year.
“It is staggering the amount of control the director will exert over the daily financial choices available to Americans,” said Sen. Richard Shelby of Alabama, the committee’s senior Republican.
Democrats, including Sherrod Brown of Ohio, struck back, contending that GOP lawmakers were holding Cordray’s nomination hostage as part of a campaign to weaken the powers of the new agency, which they contend will give consumers a fair chance in dealing with large financial institutions.
Brown countered that never before had a minority of senators pledged to block a nominee because they opposed the existence of the agency itself.
He pointed out that last year “amendments were offered that would have watered down this agency’s authority – they were considered and rejected by senators from both political parties.”
Cordray, who lost his bid for re-election last year, was nominated this summer by President Barack Obama to head the new agency, which was created by the new Dodd-Frank financial overhaul law.
Cordray declined to say whether he would back changes in the agency structure. He told Corker he had “sought not to inject myself in legislative discussions” between the White House and Congress.
Corker appeared to leave open the possibility of a compromise, saying that “almost all of this would go away if the administration would just sit down and put appropriate checks and balances in place. I still do not understand why the administration will not work in some way to solve this.”
Brown, as is customary for a home state senator, introduced Cordray to the committee while Portman, who was delivering a speech in Cincinnati, did not attend the hearing.
Joining Cordray at the hearing were his wife Peggy, and his 12-year-old twin children – Danny and Holly.
The hearing also was attended by David Leland, former chairman of the Ohio Democratic Party; Michael Van Buskirk, president of the Ohio Bankers League, and John Kozlowski, general counsel of the Ohio Credit Union League.
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