Consumer Financial Protection Bureau
|Consumer Financial Protection Bureau|
|Formed||July 21, 2011|
|Jurisdiction||U.S. Federal Government|
|Agency executive||Richard Cordray, Director|
The Consumer Financial Protection Bureau (CFPB) is the federal agency that holds primary responsibility for regulating consumer protection with regard to financial products and services in the United States.
The jurisdiction of the bureau includes banks, credit unions, securities firms, payday lenders, mortgage-servicing operations, foreclosure relief services, debt collectors and other financial companies, and its most pressing concerns are mortgages, credit cards and student loans, according to Director Richard Cordray. It was designed to consolidate employees and responsibilities from a number of other federal regulatory bodies, including the Federal Reserve, the Federal Trade Commission, the Federal Deposit Insurance Corporation, the National Credit Union Administration and even the Department of Housing and Urban Development.The bureau is an independent unit located inside and funded by the United States Federal Reserve, with interim affiliation with the U.S. Treasury Department. It writes and enforces bank rules, conducts bank examinations, monitors and reports on markets, as well as collects and tracks consumer complaints.
The CFPB opened its website in early February 2011 to accept suggestions from consumers via YouTube, Twitter, and its own website interface. According to the United States Treasury Department, the bureau is tasked with the responsibility to "promote fairness and transparency for mortgages, credit cards, and other consumer financial products and services." According to the bureau's own webpage, "The central mission of the Consumer Financial Protection Bureau (CFPB) is to make markets for consumer financial products and services work for Americans—whether they are applying for a mortgage, choosing among credit cards, or using any number of other consumer financial products."
It was founded as a result of the Dodd–Frank Wall Street Reform and Consumer Protection Act, which passed during the 111th United States Congress in response to the Late-2000s recession and financial crisis. The bureau began operation on July 21, 2011. The bureau was set up by Elizabeth Warren, who was passed over for Director in favor of Richard Cordray.
Dispute over director 
Harvard Law School professor and bankruptcy expert Elizabeth Warren, who was special consultant in charge of implementing it, was removed from the running for director after Obama administration officials became convinced she "could not overcome strong Republican opposition". On July 17, Cordray was selected over Warren as the head of the entire CFPB. However, his nomination was immediately in jeopardy due to 44 Senate Republicans vowing to derail any nominee in order to encourage a decentralized structure to the organization. Senate Republicans had also shown a pattern of refusing to consider regulatory agency nominees, purportedly as a method of budget cutting. Due to the way the legislation creating the bureau was written, without a Director the agency is not able to write new rules or supervise financial institutions other than banks.
On July 21, Senator Richard Shelby wrote an op‑ed article for the Wall Street Journal affirming continued opposition to a centralized structure, noting that both the Securities Exchange Commission and Federal Deposit Insurance Corporation had executive boards and that the CFPB should be no different. He noted lessons learned from experiences with Fannie Mae and Freddie Mac as support for his argument. Politico interpreted Shelby's statements as saying that Cordray's nomination was "dead on arrival". Republican threats of a filibuster in the Senate to block the nomination in December 2011 led to Senate inaction.
On January 4, 2012, Barack Obama issued a recess appointment to install Cordray as director through the end of 2013; this was highly controversial move as the Senate was technically in pro-forma session, and there is a possibility the appointment could be challenged in court.
The constitutionality of Cordray's recess appointment has come into question due to a January 2013 ruling by the United States Court of Appeals for the District of Columbia Circuit that Obama's appointment of three members to the NLRB (at the same time as Cordray) violated the Constitution.
List of Directors of the CFPB 
|No.||Portrait||Name||State of Residence||Took Office||Left Office||President(s)|
|-||Elizabeth Warren||Massachusetts||September 17, 2010||August 1, 2011||Barack Obama|
|-||Raj Date||Washington, D.C.||August 1, 2011||January 4, 2012|
|1||Richard Cordray||Ohio||January 4, 2012||Incumbent|
CEI Lawsuit 
A lawsuit filed in 2012 challenged the alleged unconstitutional formation and operation of the Consumer Financial Protection Bureau.
- Eaglesham, Jean (2011-02-09). "Warning Shot On Financial Protection". The Wall Street Journal. Retrieved 2011-02-10.(subscription required)
- Warren, Elizabeth (2010-09-14). "FACTBOX-New US consumer financial bureau has wide powers". Reuters. Retrieved 2011-02-10.
- Bureau of Consumer Financial Protection, topics.nytimes.com Updated: Dec. 8, 2011
- "Consumer Financial Protection Bureau Website Launched and Open for Suggestions". Mybanktracker.com. 2011-02-07. Retrieved 2011-02-10.
- "Learn About the Bureau". United States Consumer Financial Protection Bureau. Retrieved 2011-02-10.
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- Nakamura, David and Sonmez, Felicia (2012-01-04). "Obama to use executive power to name consumer watchdog chief over GOP objections". The Washington Post. Retrieved 2012-01-04.
- Clarke, Dave and Matt Spetalnick (2012-01-04). "Stymied by Congress, Obama to boldly seat nominees". Chicago Tribune. Retrieved 2012-01-05.
- Cooper, Helene and John H. Cushman, Jr. (2012-01-04). "Defying Republicans, Obama to Name Cordray as Consumer Agency Chief". The New York Times. Retrieved 2012-01-05.
- Cooper, Helene and Jennifer Steinhauer (2012-01-04). "Bucking Senate, Obama Appoints Consumer Chief". New York Times. Retrieved 2012-01-05.
- Savage, David G. (2013-01-25). "Court rules Obama recess appointments unconstitutional". Los Angeles Times. Retrieved 2013-05-03.
- Hall, Christine. "Dodd-Frank Unconstitutional Power-Grab, Says New Lawsuit". Competitive Enterprise Institute. Competitive Enterprise Institute.