Richard Cordray Headed to Washington for New Job
Having lost his re-election bid as Ohio Attorney General, Richard Cordray would soon be without a job. However, Elizabeth Warren, the White House adviser setting up the Bureau of Consumer Financial Protection, has selected Cordray to head up the agency's enforcement arm.
Cordray, a Democrat, has been a major participant in the multi-state investigation of mortgage servicers over allegedly falsified documents. In November, Cordray sued GMAC Mortgage LLC and its corporate partner, Ally Financial Inc., accusing them of using fraudulent affidavits in court cases over foreclosures in Ohio. His office is also managing litigation against financial firms like Bank of America and American International Group. Under Cordray, the Ohio state attorney general's office opened up its consumer complaint process to small businesses and non-profit organizations
The Bureau of Consumer Financial Protection, which was created by the Dodd-Frank regulatory overhaul, has authority to regulate consumer financial products. Warren has set credit cards and mortgages as its first priorities. Currently, its employees are a part of the Treasury Department, but will join the bureau in July 2011 when it officially begins work.
Cordray formerly served as Ohio's treasure, a state representative, and a law clerk to the U.S. Supreme Court. He also personally argued seven cases before the Supreme Court.
The appointment hasn't been officially announced, and as such, both Warren and Cordray's offices have declined to comment. News of the appointment comes from two sources who spoke to Bloomberg News and wish to remain anonymous.