WASHINGTON, D.C. — Confirmation to keep the director of the
Consumer Financial Protection Bureau at his post took a step forward Tuesday by
a narrow margin. Along the way, opposition reiterated its stance to how the
regulatory agency is organized.

Members of the U.S. Senate Banking Committee voted Tuesday
to approve Richard Cordray's nomination to remain as CFPB director. The 12-10
margin fell on party lines as ranking member Sen. Mike Crapo, a Republican from
Idaho, took another opportunity after the vote to make his claims about what's
wrong with the CFPB, which is eyeing the auto finance industry more after
staking out regulatory directives about mortgages and student loans.

"I appreciate that (Cordray) has reached out to me and other
Republican members of the committee," Crapo said in reference to the time
before the CFPB director testified before the committee last Tuesday.

"He and I had a very good and candid conversation prior to
the hearing," Crapo continued. "However, the issue with his nomination is a
broader debate over the structural creation of a new federal department. Some are
calling our need for structural changes as unnecessary. However, this is not
the case.

"As I stated at our hearing last week, the CFPB was
established unlike any other federal department or agency," Crapo went on to
say. "Regardless of the administration in charge, either Republican or
Democrat, the CFPB's structure needs to be revised to fit the models of
traditional departments and agencies. Otherwise, it will continue to lack the
necessary transparency and accountability."

To back up his claims, Crapo said his staff went to a
federal spending tracking website, USASpending.gov. The senator indicated the
CFPB spent more than $150 million on contracts and support services in 2012,
but his staff found only $58 million in total contracts listed online.

"This far short of the $150 million spent by the CFPB,"
Crapo said. "And many of the contracts were considered sole-source contracts so
there was no public competitive bidding. This greatly concerns me. Where is the
transparency? Where is the accountability?"

Tuesday's committee vote means Cordray's confirmation now
will be debated by the full Senate. Crapo and 42 other Republicans have pledged
to block his confirmation.

"To alleviate these concerns I reiterate my belief that
structural changes to the CFPB are necessary and essential," Crapo said after
the committee's vote on Tuesday. "Structural and other changes at the agency
are area where I believe we can find common ground to work with as we can
improve the operation of the CFPB, improve transparency and improve
accountability."

Sen. Sherrod Brown, an Ohio Democrat on the committee, wants
lawmakers to move forward with how the CFPB is organized with Cordray at the
helm.

"The Consumer Financial Protection Bureau stands up for
average Americans," Brown said soon after President Obama nominated Corday to
stay at the CFPB. "And yet, Wall Street special interests and their allies in
Congress have repeatedly refused to approve anyone to serve as the director
unless the agency's authority is watered down. The American people are fed up
with the obstructionism in Washington. We need to protect this agency that
protects American families."

While lawmakers wrangle over the CFPB, the agency seems to
be taking a greater interest in the auto finance industry.

Last week at an conference orchestrated by the Consumer
Bankers Association, CFPB assistant director of the installment and liquidity
lending group Richard Hackett and Patrice Ficklin, the agency's assistant
director of fair lending and equal opportunity, discussed the need for auto
lenders to monitor policies that allow discretion, such as dealer markups, for
potential discriminatory practices.

"Lenders should not assume they are liable only if they had
actual knowledge of the discrimination," Ficklin said.

And earlier this month, Ally Financial confirmed in its
annual report to the Securities and Exchange Commission that it's being
investigated by the bureau.

"The CFPB has recently advised us that they are
investigating certain of our retail financing practices," Ally officials said
in its SEC filing posted on March 1. "These matters, or any other investigation
or information-gathering request, may result in material adverse consequences
including without limitation, adverse judgments, settlements, fines, penalties,
injunctions or other actions.

Last month, Bloomberg reported that the CFPB told at least
four banks that it may sue them over vehicle loans and interest-rate markups by
dealers that appear discriminatory, according to three people familiar with the
matter.

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