- Sen. Sherrod Brown, D-Ohio, told CNBC that he has spoken to Cordray about working as the Fed’s vice president for oversight from the Biden administration.
- “I know Rich Cordrey well. I like him,” Brown said. “I’m talking to the White House about him and many others.”
- He is also a favorite of progressive Democrat Sen. Elizabeth Warren, who worked closely with Cordray when the two helped lead the Consumer Financial Protection Bureau.
The Democratic chairman of the Senate Banking Committee said Tuesday that he is in talks with the White House about nominating Richard Cordrey, the first director of the Consumer Financial Protection Bureau, to be the Federal Reserve’s top banking regulator.
Sen. Sherrod Brown, D-Ohio, told CNBC that he has spoken to the Biden administration about Cordray and others who could serve as the Fed’s vice president to oversee and other vacancies on the central bank’s board of governors. can fill.
“I know Rich Cordrey well. I like him,” Brown said. “I’m talking to the White House about him and many others.”
Brown could prove to be a close ally of fellow Democrat Cordrey in the weeks ahead, given their shared affinity for tougher bank regulation and Ohio roots. Born in Columbus, Ohio, Cordrey served as the state’s attorney general from 2009 to 2011 and lost the gubernatorial race to Republican Mike Devine in 2018.
He is also a favorite of progressive Democrat Sen. Elizabeth Warren, who worked closely with Cordray when the two helped lead the Consumer Financial Protection Bureau.
During the Obama administration, then-White House adviser Warren named Cordrey as his choice to lead the enforcement arm of the CFPB until the president later promoted him to lead the entire organization. Cordrey left the CFPB in 2017 after five years as the Trump administration looked for ways to eliminate the bureau’s influence.
He now works as a top official in the Department of Education, where he manages a $1.6 trillion student-loan program. Cordrey declined to comment for this story.
Asked to comment, the White House referred to CNBC in a statement issued earlier in November. Last week, the administration announced it would nominate Fed Chairman Jerome Powell for a second term and Fed Governor Lyle Brainard as central bank vice president, a role separate from the vice president for supervision.
“President Biden still has three vacant seats on the Federal Reserve Board of Governors, including the crucial position of vice chair for supervision,” the administration said on November 22. “The president intends to begin those appointments in early December, and is committed to improving diversity in the composition of the board.”
The Fed’s vice chair for supervision, a role created in the aftermath of the 2007–09 financial crisis, serves as one of the nation’s top bank watchdogs and the nation’s largest lenders such as JPMorgan Chase, Goldman Sachs and Citi. Responsible for ensuring the health of , The officer monitors banks’ balance sheets, capital reserves and broader systemic risks that may arise in the event of an economic downturn.
Fed Governor Randall Quarles served as the Fed’s first vice president for supervision until October, when his four-year term ended. His tenure was criticized by progressives such as Brown and Warren, who railed against his efforts to relax banking regulations in the years following the financial crisis.
Cordrey, if nominated and confirmed, would likely offer the opposite of Quarles.
As the former attorney general of Ohio, Cordrey sued Bank of America in a 2009 lawsuit alleging that bank executives learned of Merrill Lynch’s deteriorating financial condition prior to a shareholder vote on their merger. Worked to hide information.
“Rich Cordrey has spent years fighting on behalf of American families,” Warren said in a statement released in May after Biden’s administration decided to nominate him to the Department of Education.
“Rich was a fearless and effective leader in the Consumer Financial Protection Bureau, where he held large banks accountable and forced financial institutions to return $12 billion directly to those he defrauded,” he said. “I am very pleased that he will apply his fearlessness and expertise to protect student loan borrowers and bring much-needed accountability to the federal student loan program.”
– CNBC’s Ylan Muick