After months of speculation, the Director of the Consumer Financial Protection Bureau (CFPB), Richard Cordray, announced Wednesday, November 15 that he would be stepping down from his post by the end of the month. His announcement comes just days after an internal federal investigation absolved him of concerns that he had begun campaigning to be the next governor of Ohio while still serving the federal government.
Cordray will leave a mixed legacy as the first leader of the federal consumer watchdog. He recently watched his agency’s rule limiting mandatory arbitration in disputes over credit products repealed by Congress and President Trump. His departure will also cast doubt on the future of the Bureau’s recently issued rule on small dollar loans, another key rule Cordray’s team spent years developing.
Rumors had swirled around Cordray’s impending departure since another potential Democratic candidate for governor of Ohio, current Ohio Supreme Court Justice Bill O’Neill, commented in the spring that he would not run if Cordray joined the race. O’Neill’s revelation came after conversations with a close friend of Cordray concerning the federal regulator’s likelihood of entering the race, which will take place in November 2018. Cordray came under increasing fire from House Financial Services Committee Chairman Jeb Hensarling (R- TX) for his perceived campaign flirtations.
The President has remained uncharacteristically mum about replacements for Cordray since taking office one year ago. NAFSA will stay on top of this developing story and alert membership to any further announcements.
