Obama to nominate consumer agency chief next week: report

Reuters News
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Posted: Jul 15, 2011 9:09 PM
Obama to nominate consumer agency chief next week: report

WASHINGTON (Reuters) - The White House plans to nominate a new director to the Consumer Financial Protection Bureau next week but is unlikely to name Elizabeth Warren, who has helped to set it up, the Wall Street Journal reported on Friday, citing people familiar with the matter.

The nomination will come as the agency officially opens next week. Its official launch will come one year after it was created by the Dodd-Frank Wall Street overhaul law.

President Barack Obama is not expected to nominate Warren, according to the Journal. Warren, favored by Democrats and consumer advocates, has come under fire from Republicans.

The names under consideration include former Ohio Attorney General Richard Cordray, Michigan Governor Jennifer Granholm and Raj Date, an aide to Warren, the Journal said.

Whoever is nominated will likely face a tough road to get installed because of opposition from Republicans, who would like to see structural changes made to the agency.

The White House declined to comment on the Wall Street Journal's report.

The Consumer Financial Protection bureau was established as a consumer watchdog and will serve to protect against abusive credit-card, mortgage and payday lender practices.

(Reporting by Sarah N. Lynch, Laura MacInnis and Margaret Chadbourn; editing by Gary Hill)