CFPB Director Richard Cordray told employees at the bureau that he plans to step down from his post at the end of the month. As of this morning, neither the bureau nor Cordray have publicly commented on his resignation. However, multiple media outlets reported the news, citing an email from Cordray to staff at the CFPB.
Former President Barack Obama nominated Cordray to head the CFPB, and he was confirmed by the Senate in 2013. During his tenure, his relationship with the financial services industry, and credit unions in particular, was often contentious and tumultuous. While he repeatedly spoke of the credit union difference and publicly acknowledged they played no role in the financial crisis, the bureau frequently failed to differentiate between credit unions and other financial institutions in their rulemaking.
“Richard Cordray is a strong consumer advocate who has operated with admirable intentions, and we certainly wish him all the best in his future endeavors,” said New York Credit Union Association President/CEO William J. Mellin. “There’s no question credit unions have long felt that Director Cordray’s approach to regulation and rulemaking often failed to distinguish between the worst actors in financial services and those that already operate with consumers’ best interests in mind. Hopefully the new leadership at the bureau—in whatever form it takes—will use their authority to exempt credit unions from regulations that should be aimed only at the institutions that harm consumers or pose a true systemic risk.”