Oh, Richard. The Consumer Financial Protection Bureau’s (CFPB) embattled director is being threatened by the House Financial Services Committee. Why? For allegedly lying about the CFPB’s investigation into the Wells Fargo scandal. According to American Banker, “the committee claimed that the CFPB has not produced records showing that it conducted a full investigation of Wells’ branch sales practices or that it was aware of problems with phony accounts before the L.A. city attorney took action against the bank.”
This would contradicts Cordray’s April testimony to Congress, when he claimed that the CFPB had conducted an “independent and comprehensive” investigation and was already tracking Wells’ sales practices.
The committee released a report stating the following: “Due to CFPB Director Richard Cordray’s failure to honor his legal obligation to produce all records responsive to the committee’s subpoena, the committee’s Wells Fargo investigation is at an impasse. Key questions remain unanswered. For example, the committee cannot substantiate Director Cordray’s Congressional testimony on the current record.” You can read the full report here.
Lying to Congress could be used as a basis to fire Cordray “for cause.” It would be long overdue.