3 Republican Senators Out to Block CFPB Actions in Light of Appeals Court Decision
WASHINGTON, D.C. — By the time an assistant director from
the Consumer Financial Protection Bureau makes a return engagement as the
keynote speaker during the National Automotive Finance Association's annual
conference this summer, the agency's structure and regulatory power could be
significantly different — especially if a trio of Senators have their way.
Three Senate Republicans introduced legislation on Thursday
prohibiting the CFPB as well as the National Labor Relations Board from
enforcing or implementing decisions and regulations without a constitutionally
confirmed board or director.
The D.C. Circuit Court of Appeals ruled that President Barack Obama
violated the Constitution when he made appointments to NLRB without
confirmation by the Senate.
U.S. Sens. Mike Johanns (R-Neb.), Lamar Alexander (R-Tenn.)
and John Cornyn (R-Texas) all contend Obama took the same unconstitutional
actions with Richard Cordray, who they believe "has been illegitimately serving
as CFPB director under the same circumstances."
The Restoring the Constitutional Balance of Power Act of
2013 prohibits NLRB from undertaking or enforcing any decisions that required
the approval of a quorum of board members since the president's overreach. The
legislation also blocks CFPB's next transfer of funds from the Federal Reserve
to carry out any actions that require the approval of a director.
Johanns said, "These agencies have been operating under a
ruse for more than a year. Any decisions or regulations made by the people who
have no right to be there are invalid. This legislation forces them to stop
functioning as if they legitimately hold office and recognize the reality that
the President overstepped his constitutional authority."
Alexander added, "If they won't take down their ‘Open for
Business' sign and put up one that says ‘Help Wanted,' then the Senate will.
The President created this problem but the Constitution provides him with a way
to fix it – send the Senate acceptable nominees to fill these important
positions."
And Cornyn went on to say, "American democracy was born out
of a rejection of the monarchies of Western Europe, anchored by limited government
and separation of powers. We refuse to stand by as this President arrogantly
casts aside our Constitution and defies the will of the American people under
the guise of defending them."
CFPB Assistant Director to Keynote NAF Association
Conference Again This Year
As mentioned, Richard Hackett, an assistant director at the CFPB,
is on tap to be the keynote speaker at the National Automotive Finance Association's
17th Annual Non-Prime Auto Financing Conference.
This year's event is set for June 5-7 at the Omni Fort Worth
Hotel in Fort Worth, Texas.
The NAF Association highlighted Hackett, who spent more than
30 years in private practice representing creditors, has a unique background
for this position. Hackett leads the installment and liquidity lending group in
the research, markets and rulemaking division of the CFPB.
Hackett's responsibilities at the bureau include advising
all divisions on market information and policy and legal issues in the
installment and specialty lending areas, including vehicle finance.
"Once again the association is fortunate to have Rick as our
keynote speaker," NAF Association executive director Jack Tracey said. "With a
year under its belt our members are interested to learn what the CFPB is
actively involved with and what is coming down the pike. This gives our
attendees the opportunity to hear directly from the auto financing industry's
regulator. We're excited to be able to provide this opportunity."
More information on the conference program and registration
can be found at www.nafassociation.com.
CFPB Names Acting Deputy Director
Meanwhile as the three Senators made their announcements on
Capitol Hill, the CFPB revealed that Steve Antonakes will serve as acting
deputy director while the agency continues its search for a replacement for
departing deputy director Raj Date.
Date's last day at the bureau was Thursday.
As Antonakes assumes this temporary role, the agency indicated
he will maintain responsibility for his current duties as the associate director
for supervision, enforcement and fair lending at the CFPB.
"We will be forever grateful to deputy director Raj Date for
his tremendous work to protect American consumers. As the CFPB's first deputy director,
Raj has helped to lead the agency's organizational, strategic, and policy
efforts and put in place key new mortgage rules that will benefit all Americans,"
CFPB director Richard Cordray said.
"Although we will miss Raj, he has helped to build a strong,
talented team and I am pleased that Steve will be taking on the role of acting
deputy director. Steve's knowledge, expertise, and judgment will continue to be
invaluable as we move forward with our important work – making markets work for
consumers and responsible businesses," Cordray went on to say.
As Cordray pointed out, Date spent more than two years
helping to build the agency as its first deputy director. Date played a number
of key leadership roles within the bureau, including as the special advisor to
the Secretary of the Treasury and as the associate director for research,
markets, and regulations.
Date has had a long and varied career in and around U.S.
financial institutions — as a strategy consultant, as a bank executive and on
Wall Street. In 2009, Mr. Date founded and served as chairman and executive
director of the Cambridge Winter Center for Financial Institutions Policy, a
private, non-profit research and policy organization that supported reform of
the U.S. financial system. He was previously a managing director in the financial
institutions group at Deutsche Bank Securities, where he led the firm's
investment banking coverage for the largest U.S.-based banks and thrifts.
Before that, Date was senior vice president for corporate
strategy and development at Capital One Financial where he led mergers and
acquisitions development efforts across the U.S. banking and specialty finance
markets.
Date began his business career in the financial institutions
practice of the consulting firm McKinsey & Company. Date has also served as
an attorney, in both private and government practice.
Antonakes' background includes more than two decades as a
financial services regulator. He first joined the CFPB in November 2010 as the assistant
director of large bank supervision and was named the associate director for
supervision, enforcement, and fair lending last June.
Antonakes began his professional career as an entry level
bank examiner with the Commonwealth of Massachusetts Division of Banks in 1990.
He served in numerous managerial capacities before being appointed by
successive governors to serve as the Commissioner of Banks from December 2003
until November 2010, becoming only the second career bank examiner to ever
serve in that capacity.
In addition, Antonakes served as the first state voting
member of the Federal Financial Institutions Examination Council (FFIEC), as
the vice chairman of the Conference of State Bank Supervisors (CSBS), and as a
founding member of the governing board of the Nationwide Mortgage Licensing
System (NMLS).
Antonakes also received NeighborWorks America's Government
Service Award for his work in combating foreclosures in March 2007.
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