Get All Access for $5/mo

Senate Confirms Richard Cordray to Lead U.S. Consumer Protection Agency After a two-year standoff, lawmakers vote to formally install the former Ohio Attorney General at the helm of the Consumer Financial Protection Bureau.

By Catherine Clifford

Opinions expressed by Entrepreneur contributors are their own.

Business Insider
Richard Cordray

Main Street's watchdog has officially taken the reins in Washington, D.C.

The U.S. Senate voted to confirm former Ohio Attorney General Richard Cordray to head the Consumer Financial Protection Bureau.

President Barack Obama nominated Cordray in 2011 and appointed him in January. The 66-34 Senate vote late Tuesday ends a two-year partisan impasse and officially instates him in the role. Vice President Joe Biden swore Cordray into office on Wednesday.

Related: White House Plays Offense: Says Immigration Reform Will Turbocharge Entrepreneurship

The bureau was established in 2010 with the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act. It opened a year later to educate consumers about the financial products they use most, including credit cards and mortgages, and to supervise the banks and credit unions that provide those services. The agency also conducts research on the financial markets and the providers who serve them.

"There will be certainty for those markets and for the industries we oversee," Cordray said in a statement from the White House. "For me, it also reaffirms that our central responsibility is to stand on the side of consumers and see that they're treated fairly, just as the President described it. It's something that people deserve. It's something that they want and need. And we're there to try to provide it."

Since the agency launched, it has returned $425 million in refunds to 6 million consumers, according to testimony Cordray gave earlier this year before the U.S. Senate Committee on Banking, Housing and Urban Affairs. Also, it is working to address more than 175,000 consumer complaints, Obama said in a statement from the White House earlier today.

Related: Health-Care Innovators Get President Obama's Attention

"Part of what happens is when you've got a watchdog, people don't try as many things," said Obama. "And everybody starts tightening up their practices because they know somebody is watching. And so that has ripple effects throughout our economy."

At least one small-business group supports the confirmation. "For too long, Wall Street banks and the financial industry wrote their own rules while no one was looking out for small businesses and consumers," said David Borris, an executive committee member of the Main Street Alliance, a national advocacy organization, in a statement. "The Bureau is empowered with independence and authority to work to ensure that small businesses and consumers have an effective ally in our corner." Borris is also the owner of Hel's Kitchen Catering in Northbrook, Ill.

Other small-business groups, including the National Federation of Independent Business, whose spokeswoman declined to comment on Cordray's confirmation, have remained silent.

This is not Cordray's first role looking out for the little guys. In his time as Ohio's attorney general, Cordray recovered $2 billion for the state's retirees, investors and business owners. Previously, Cordray was an adjunct professor at the Ohio State University College of Law. He has also served as an Ohio State Representative and argued seven cases before the U.S. Supreme Court as a lawyer.

Related: Searching for Business Ideas? 9 Industries that Obama Policies Will Actually Help

Catherine Clifford

Senior Entrepreneurship Writer at CNBC

Catherine Clifford is senior entrepreneurship writer at CNBC. She was formerly a senior writer at Entrepreneur.com, the small business reporter at CNNMoney and an assistant in the New York bureau for CNN. Clifford attended Columbia University where she earned a bachelor's degree. She lives in Brooklyn, N.Y. You can follow her on Twitter at @CatClifford.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Science & Technology

5 Automation Strategies Every Small Business Should Follow

It's time we make IT automation work for us: streamline processes, boost efficiency and drive growth with the right tools and strategy.

Business News

Former Steve Jobs Intern Says This Is How He Would Have Approached AI

The former intern is now the CEO of AI and data company DataStax.

Leadership

Visionaries or Vague Promises? Why Companies Fail Without Leaders Who See Beyond the Bottom Line

Visionary leaders turn bold ideas into lasting impact by building resilience, clarity and future-ready teams.

Marketing

5 Critical Mistakes to Avoid When Giving a Presentation

Are you tired of enduring dull presentations? Over the years, I have compiled a list of common presentation mistakes and how to avoid them. Here are my top five tips.

Side Hustle

'Hustling Every Day': These Friends Started a Side Hustle With $2,500 Each — It 'Snowballed' to Over $500,000 and Became a Multimillion-Dollar Brand

Paris Emily Nicholson and Saskia Teje Jenkins had a 2020 brainstorm session that led to a lucrative business.

Employee Experience & Recruiting

There's a Growing Demand For This New Type of Professional — Here's Why Your Startup Needs Them, Too.

As startups evolve, a new breed of talent — the "boulder climber" — is emerging: adaptable professionals who balance strategic vision with hands-on execution. Learn why these versatile hires are redefining success in lean, agile teams.