They also mark another example of the CFPB flexing its newfound muscles, now that it has a director.
After the bureau was created by the Dodd-Frank financial reform law, it was granted the ability to regulate and enforce consumer protection laws on the banking sector, after receiving those powers from a handful of other regulators. But it was not able to tap new powers granted it under the law, including regulating the nonbank financial sector, until a director was in place.
President Obama nominated Cordray for the position last summer, but GOP opposition to the bureau’s current structure blocked his consideration. The president finally circumvented that opposition in January, using his recess-appointment powers to place Cordray at the top.
The CFPB has been quick to get moving on fleshing out its powers now that a director is in place. One day after Obama announced Cordray’s appointment, the agency announced its program to supervise nonbanks.