White House officials say that on Monday President Obama will nominate former Ohio Attorney General Richard Cordray to head the Consumer Financial Protection Bureau, where he currently serves as director of enforcement.
The selection is a slight to Elizabeth Warren, who first proposed and has helped create the agency. But Warren's nomination would have been challenged in the Senate.
Last September, the president announced that Warren, a Harvard Law School professor, would be named to a special position reporting to both him and to the Treasury Department and tasked with heading the effort to get the new federal agency standing.
He noted at the time that “the idea for this agency was Elizabeth Warren’s,” a reference to an essay she wrote in 2007 in Democracy: A Journal of Ideas in which she proposed a “Financial Product Safety Commission.”
Forty four US Senators wrote to the president in May that they will not confirm any nominee unless the director poisition is replaced with a board subjected to the congressional appropriations process, among other changes.
The CFPB begins formal operations on July 21.