What do you get when you combine Elizabeth Warren and Richard Cordray?
Wall Street is going to find out.
Bloomberg is reporting that Elizabeth Warren is hiring outgoing Attorney General Richard Cordray to run the enforcement division of the new federal Bureau of Consumer Financial Protection agency.
The consumer bureau, which was created by the Dodd-Frank regulatory overhaul, has the authority to regulate consumer financial products, and Warren has set credit cards and mortgages as its first priorities. Its employees are now part of the Treasury Department and will join the bureau when it officially starts work in July 2011.
In November, Cordray sued GMAC Mortgage LLC and its corporate parent, Ally Financial Inc., accusing them of using fraudulent affidavits in court cases over foreclosures in Ohio, according to the state’s website. His office is also managing litigation against financial firms including American International Group and Bank of America Corp.
I can’t believe we didn’t think of this matchup sooner. Rich Cordray and Elizabeth Warren. That’s about as much of a perfect pairing as I can imagine.
Although this means that Rich will be out of the state, this is also the kind of experience, though, that can be used to pivot back into Ohio politics… say, in a gubernatorial bid in 2014, for example. This position will have a fair amount of visibility and would further brandish Cordray as an economic populist.
The only downside is that Rich won’t be our Attorney General, but I’d be hard pressed to imagine a better place for him to be instead. I thought he might wind up at the Justice Department, maybe become an U.S. Attorney, but this is a better result for him, and the country, than I imagined.