March 19, 2013 |
Democrats on the Senate banking committee on Tuesday approved the nomination of Richard Cordray to head the Consumer Financial Protection Bureau — just as they did nearly two years ago. Clearing the committee, even by a slim 12-10 margin, was a minor feat. The real hurdle will come on the Senate floor. Cordray's nomination remains at the center of a larger political fight over the structure of the watchdog agency and, although the Democrats have 55 seats in the Senate, a single Republican could filibuster a final vote.
April 22, 2013 |
Richard Cordray, director of the Consumer Financial Protection Bureau, is being barred from testifying before the House Financial Services Committee until he is confirmed by the Senate. Committee Chairman Rep. Jeb Hensarling (R-Tex.) sent a letter to the consumer bureau on Monday saying Cordray's recess appointment places his authority in question. In January, a federal appeals court ruled that President Obama's recess appointments to the National Labor Relations Board were unconstitutional and therefore invalid.
September 13, 2012 |
Richard Cordray, director of the Consumer Financial Protection Bureau, faced renewed questions Thursday about the legitimacy of his agency. Cordray, in a semiannual report to Congress, touted the bureau's accomplishments in drafting rules to fix mortgage servicing and supervising the previously unregulated non-bank financial firms. He added that the bureau is working on rules to bring greater transparency to prepaid debit cards and is fine-tuning its consumer complaint database — as of Sept.
May 12, 2013 |
It's been five years since the onset of the financial crisis — the rescue of Bear Stearns in March 2008 — and we still don't know whether the financial system is safe. In a recent speech, Daniel Tarullo, the Federal Reserve's point man on regulation, contended that substantial, though incomplete, progress has been made. As an example, he cited the doubling of equity capital for the 18 largest bank holding companies from $393 billion in late 2008 to $792 billion at the end of 2012.
April 23, 2013 |
Banking regulators are set to hand down tough new rules to govern short-term, high-interest loans that have been blamed for trapping some Americans in a cycle of debt, according to people familiar with the matter. The rules, which are slated to come out Thursday, could radically alter the operations of the small but growing number of banks, including Wells Fargo and U.S. Bancorp, that offer loans tied to anticipated direct deposits of salary, government benefits or other income. Critics say these products carry the same abusive high interest rates and balloon payments as the payday loans provided by storefront vendors.
February 25, 2012 |
Bank overdraft fees drive me crazy. It's just wasted money. Sure, overdraft protection is a good backup for the times you miscalculate, but sometimes the fees run into the hundreds of dollars a month and are the most burdensome on the people least able to afford them. Well, the Consumer Financial Protection Bureau intends to do something about this. The bureau is investigating banks' overdraft practices and their effect on consumers' finances. If you have overdraft protection, your financial institution will cover the transaction so your check won't bounce — but it will charge you a fee. The average overdraft fee ranged from $30 to $35 in 2011 and has increased 17 percent over the past five years, according to CFPB.
July 18, 2011 |
President Obama has decided to name former Ohio Attorney General Richard Cordray to lead the Consumer Financial Protection Bureau, which is set to launch this week. In doing so he bypassed Elizabeth Warren, the Harvard professor who has been one of the nation's leading champions for reform on behalf of those ripped off by high credit rates and shady mortgages. Not to mention the bureau was her idea. It was Warren's brainchild to put a "cop on the beat" in the wake of the epic failure by federal regulators who fiddled while the economy tanked in 2008.
September 25, 2012 |
Credit bureaus sometimes provide Americans with credit scores that are different from those that lenders use in deciding whether to offer a loan and at what interest rate, the government's consumer watchdog found in a study released Tuesday . Researchers at the Consumer Financial Protection Bureau found that the discrepancy happens for as many as one in four people. The consumer agency issued the study five days before it will begin supervising credit-reporting firms. That will give the bureau oversight of about 30 companies that make up the majority of the $4 billion industry.
December 13, 2012 |
Anyone who has ever applied for a loan or tried to rent an apartment knows the importance of having a good credit score. Yet there is little understanding of how those scores are devised. A new paper released Thursday by the Consumer Financial Protection Bureau lifts the veil off of credit reporting, revealing that the way consumers use the plastic in their wallets weighs heaviest on their scores. While that's not too surprising, considering that Americans own nearly 610 million credit cards, the finding does cast new light on the gravity of failing to keep up with those accounts.
June 9, 2011 |
The stalemate between Republicans and the White House over who will lead a nascent consumer watchdog agency showed no signs of abating Thursday, despite the emergence of a new candidate with long ties to the financial industry. Democrats' top pick for the job, Harvard law professor Elizabeth Warren , is in charge of setting up the Consumer Financial Protection Bureau but has become a polarizing figure among Republicans. The White House instead is considering one of her lieutenants , Raj Date, a veteran of Capital One and Deutsche Bank, as an alternative, according to a person familiar with the matter.