As scrutiny continues to increase on Richard Cordray’s political machinations, The New York Times is reporting that “there is a mounting sense of urgency” at the CFPB regarding the finalization of new regulations on payday lending.
Within the agency, there is a mounting sense of urgency to get the final version of the payday rules out, according to two people familiar with the process. The new rules would represent the first time that the lucrative market — the payday industry collects $7 billion annually in fees — was directly regulated by the federal government.
It appears increasingly likely that the “sense of urgency” exists because Cordray is on the cusp of resigning from the Bureau in order to announce a run for Governor of Ohio. Cordray will be attending a union picnic in Cincinnati on Monday, where it has been speculated that he could kick-off his campaign, with one Ohio union even noting that this could be the moment when he jumps into the fray.
Given the New York Times’s reporting, it seems abundantly clear that this rule is being rushed because Cordray knows that he will soon be leaving the Bureau to run for Governor. That is completely unethical and if Cordray has already decided to launch a campaign, which seems highly probable at this point, it’s extremely disturbing that he’d still try and push through rules at the CFPB.