House Dems defend Cordray in advance of Capitol Hill hearing

By Peter Schroeder - 01/24/12 01:47 PM ET

House Democrats accused their Republican counterparts Tuesday of harassing top officials with the Consumer Financial Protection Bureau (CFPB) by calling them up for multiple hearings.

House Democrats gathered to offer their support for the bureau and its new director, Richard Cordray, just hours before he was slated to appear before a House Oversight subcommittee.

Cordray has been at the center of a hot partisan fight ever since the president controversially recess-appointed him to the position earlier this month as a way to overcome strong GOP opposition to the bureau and his nomination. But Democrats were dismissive of GOP concerns about the agency, which they say is overpowerful and lacks oversight.

"Despite the doomsday predictions of some of our Republican colleagues, President Obama's very sensible and timely appointment of Richard Cordray ... has not brought about a plague of locusts or embarked the four horsemen of the apocalypse on their journey," said Rep. Luis Gutierrez (D-Ill.).

Rep. Carolyn Maloney (D-N.Y.) said CFPB officials have had to testify before Congress a dozen times in the last 11 months, suggesting that Republicans have been eager to press them publicly in hearings that have sometimes grown heated.

"Some hearings can be described as a 'fishing expedition' — I hope today's hearing doesn't become a 'bashing expedition' by the members of the majority," said Maloney.

Cordray's predecessor at the agency, Elizabeth Warren, had a public spat with Rep. Patrick McHenry (R-N.C.) at a May hearing on the bureau, as they publicly disagreed over how long she had agreed to testify. McHenry will chair Tuesday's hearing with Cordray — his first since being tapped by the president.

In addition, 50 House Democrats sent a letter to Obama Tuesday thanking him for recess-appointing Cordray, calling it necessary "in light of Senate Republican attempts to hold his appointment hostage."

Senate Republicans announced they would block any nominee to head the agency until several changes were made to its structure — including replacing the director position with a multi-member board. In addition, Republicans kept the Senate in brief pro forma sessions during longer breaks in an effort to block recess appointments.

Obama opted to ignore those sessions to make several recess appointments earlier in January, leading Republicans to loudly cry foul and warn of court challenges to the unprecedented maneuver. The Justice Department said the White House's move was justified, since the pro forma sessions are not legitimate times of congressional work.