Grassley pushes for consumer bureau watchdog in budget amendment

Sen. Tom Coburn (R-Okla.) is a co-sponsor on the amendment.

{mosads}Other financial regulators, including the Securities and Exchange Commission, Commodity Futures Trading Commission, and the Federal Deposit Insurance Corporation, all have their own independent inspectors general. The Office of the Comptroller of the Currency, which is housed in the Treasury Department, is overseen by the Treasury’s version.

Senate Republicans are currently blocking President Obama’s nominee for director of the bureau over concerns about the agency’s accountability. Republicans are calling for the director position to be replaced with a bipartisan commission and to have its budget brought under the control of congressional appropriators. They also want to give other regulators more power to veto CFPB regulations.

But CFPB backers contend the moves are simply attempts to weaken the agency, which was broadly opposed by Republicans when it was first proposed. Richard Cordray is currently leading the agency, but he was controversially recess appointed after Republicans first blocked the nomination.

Grassley’s amendment is one of hundreds proposed to the Senate budget. Senate Majority Leader Harry Reid (D-Nev.) said Friday he was looking to pare down that number as the Senate prepares for a lengthy stretch of votes on the measure.