An old picture of Richard Cordray (center) with couple union leaders.
In an e-mail to his co-workers, the director of the Consumer Financial Protection Bureau (CFPB), Richard Cordray, officially announced his plans to leave office by the end of the month.
Richard Cordray was among the last government officials to be appointed by the Obama Administration in the banking regulation industry. Although Cordray did not mention anything about his plans, some speculators think he may be a potential candidate for the upcoming Ohio gubernatorial election.
His resignation is not a surprise to anyone familiar with the industry. The director of the Consumer Financial Protection Bureau has been on the political hot seat since the new administration entered the Executive Branch. However, it is unclear whether his future job prospects as CFPB Director or his Ohio governor ambitions spurred the move.
Some politicians expressed their regrets when they heard the news. Senator Warren (D-MA) highlighted Cordray’s achievements, saying “he will be missed.'' She quoted the returning of $12 billion to cheated consumers.
Others expressed no regrets. Senator Orrin Hatch (R-UT) claimed that “the CFPB has been a problem.” He continued, “Therefore, it’s high time that changes be made.”
The CFPB, established in 2008 by the Obama administration under the Dodd-Frank rule made it to the headlines with its aggressive regulations and the significant fines imposed to multinational banks.
Cordray helped handle more than 1.3 million consumer complaints across multiple industries. One realm of complaints he helped moderate involved student loans. Many of the complaints filed during his tenure led to the awareness of shady student loan servicer interaction with consumers.
Most notably, the CFPB brought lawsuits against Navient, a massive student loan servicer, for allegedly misleading student borrowers in repayment. However, the lawsuit did not amount to any serious action since Navient defended itself accordingly.
The Oval Office did not comment the Cordray's departure. It only said it would announce an acting director soon, and the President would decide who to replace him in a timely manner.
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