Obama Picks Head of New US Consumer Agency

Posted July 18th, 2011 at 1:45 pm (UTC-5)
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U.S. President Barack Obama has named Richard Cordray as the head of the new Consumer Financial Protection Bureau.

Cordray is a former attorney general of Ohio. His appointment needs to be confirmed by the Senate.

In choosing Cordray, Mr. Obama bypassed Harvard University professor Elizabeth Warren, who has 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, which is tasked with protecting U.S. consumers from abusive mortgage lending practices and hidden credit card fees. She faced opposition from Republicans in the Senate, and observers say she would have had a difficult time winning confirmation.

The Consumer Financial Protection Bureau will begin its work on Thursday.