Outgoing Ohio Attorney General, Richard Cordray, has been selected to lead the enforcement division of the new Consumer Financial Protection Bureau (“CFPB”). While serving as the Attorney General, Cordray filed lawsuits against national financial institutions such as Wells Fargo, GMAC Mortgage, and AIG, that, according to Cordray’s bio, resulted in more than $2.5 billion in settlements. He, however, felt restricted by the federal laws limiting actions that states can take against nationally-chartered banks and has stated that, in his new post, “I’ll have a clearer field . . . right now, my focus will be big banks.” That focus will likely include unfair mortgage, foreclosure, credit card, and debt collection practices.
The Wall Street Journal also recently reported that White House adviser Elizabeth Warren and her senior adviser have solicited input from business and consumer groups regarding possible candidates to head the CFPB. Prior to appointing her as White House adviser, the Obama administration considered nominating Ms. Warren to head the agency, but reportedly had concerns that Republicans might have blocked her appointment during the Senate confirmation process.