I wanted to share with each of you directly what I have told the senior leadership in the past few days, which is that I expect to step down from my position here before the end of the month.
"This decision on the part of the Director now allows the Administration to appoint an individual who can balance the needs of consumers with those of the industry through competent management", said Lynyak. "Under his outstanding leadership, the Consumer Bureau has made the financial marketplace stronger and fairer for hardworking Americans across the country". He is expected to return to his home state of OH to run for governor.
One of Cordray's last major efforts at the agency - a rule that would ban financial services companies from requiring consumers to go to binding arbitration when disputes arose -was struck down recently by party-line votes in Congress and by President Trump. His term was set to end in July 2018.
"The resignation of the bureau's director is an excellent opportunity to enact desperately needed reforms", said Rep. Jeb Hensarling, the chairman of the powerful House Financial Services Committee and a long-time critic of Cordray, in a statement.
As The Hill reports, Cordray pulled no punches when it came to Wall Street, returning roughly $12 billion of Wall Street money to consumers through enforcement actions, and addressing 1.3 million consumer complaints during his tenure. The two political parties had also argued over whether Mr. Trump has the legal authority to fire Mr. Cordray.
Cordray was appointed the first director of the newly created CFPB in 2011 by Obama.
In October, he announced the completion of a top CFPB priority: a rule aimed at cracking down on payday lenders.
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David Hirschmann, president and CEO of the U.S. Chamber's Center for Capital Markets Competitiveness said, "Too often, the CFPB adopted a "keep them guessing" approach to regulation and supervision, and the unnecessary uncertainty has left consumers with less access to the products they need".
Cordray had previously been attorney general of Ohio.
Incumbent Gov. John Kasich (R.) is term-limited and can not seek reelection when his second term ends in January 2019.
"If Rich Cordray runs for governor of OH, he would be a very strong candidate", said Adam Green, Co-Founder of the Progressive Change Campaign Committee. Cordray used that mandate aggressively as its first director, which often made him a target for the banking industry's Washington lobbyists and Congressional Republicans who believed Cordray was overreaching in his role, calling the CFPB a "rogue agency".
The CFPB gets its funding from the Federal Reserve and its director is given significant leverage to go after what he or she considers important and can not be removed from the position except for wrongdoing.
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