U.S. President Barack Obama has nominated a former state attorney general to head the new federal Consumer Financial Protection Bureau.

Richard Cordray is a 52-year-old lawyer who served both as attorney general and treasurer of Ohio. He most recently has been working as director of enforcement for the consumer bureau, which began preliminary operations in February. His appointment needs to be confirmed by the U.S. Senate.

The Consumer Financial Protection Bureau will serve as a government watchdog to protect U.S. consumers from abusive mortgage lending practices and hidden credit card fees. The agency officially begins its work on Thursday.

Mr. Obama said at the White House Monday that the recent financial crisis and recession were the result of abuses and lack of smart regulation. He said the new agency will help middle-class Americans make better decisions about their finances.

In choosing Cordray, Mr. Obama bypassed Harvard University professor Elizabeth Warren, who had been working to set up the agency as a special adviser to the White House and Treasury Secretary Timothy Geithner.

Warren is credited with developing the idea for the agency. She faced stiff opposition from Senate Republicans, who have opposed the creation of the bureau.