March 12, 2013

Law360 quotes Jonathan Pompan on confirmation hearings for CFPB director

1 min

In a March 11, 2013 article Law360 quoted Venable partner Jonathan Pompan on the Senate confirmation hearings beginning today for incumbent director of the Consumer Financial Protection Bureau (CFPB), Richard Cordray, and the battle over the CFPB’s structure that will likely ensue.

Commenting on the controversy over the CFPB's single-director leadership structure and its non-Congressional funding, Pompan said those fights are bound to take up all of the oxygen in the Senate Banking Committee's chambers when Cordray sits for a confirmation hearing, to the exclusion of discussions about the bureau's enforcement practices and views on unfair, deceptive or abusive acts and practices, or UDAAP, by financial institutions, among other issues. He added that "there's no question that issues with regard to structure seem to be overwhelming any substantive discussion on policy."

Noting the gridlocked CFPB directorship debate, Pompan said "now we're left with what appears to be a game of chicken." He said an increasing number of industry participants are starting to wonder whether continuing the fight over the CFPB's structure is worth it. Pompan concluded, saying "we're certainly not there yet, but at some point various interests need to decide, do you work with what you've got or do you continue to push for change?"