Cordray Defends Proposed CFPB Budget Hike

Cordray Defends Proposed CFPB Budget Hike Consumer Financial Protection Bureau (CFPB) Director Richard Cordray defended the Obama administration's proposal to increase his agency's budget by 26% in fiscal year 2013 to $448 million.

The Los Angeles Times reports that Cordray, in an appearance yesterday before the House Financial Services Committee, said that the CFPB was spending below its legal budget cap and that its operating costs were lower than those of other regulators.

‘Our budget is smaller than other banking agencies,’ Cordray said.

Cordray brushed aside concerns raised by Rep. Bill Posey, R-Fla., that the CFPB was paying very high salaries. Posey noted a report by Judicial Watch that found the CFPB's associate director for consumer education had an annual salary of $251,000 while an intern took home $42,000 a year. Cordray stated that Congress was responsible for setting the CFPB's salaries and that the agency's average salary was 4% below the average salary at the Federal Reserve.

Rep. Carolyn Maloney, D-N.Y., defended the CFPB budget, stating that the ‘appropriations process oftentimes can become very political.’ Maloney added that deeper cuts to the CFPB's budget would disrupt its ‘ability to help people.’


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