AP sources: Obama bucks GOP, OKs consumer watchdog leader

In a defiant display of executive power, President Barack Obama today will buck GOP opposition and name Richard Cordray as the nation’s chief consumer watchdog, even though the Senate contends the move is inappropriate, senior administration officials tell The Associated Press. With a director in place, the new Consumer Financial Protection Bureau will be able to start overseeing the mortgage companies, payday lenders, debt collectors and other financial companies often blamed for practices that helped tank the economy. Obama’s decision to make a recess appointment is certain to cause an uproar, from Capitol Hill to Wall Street. He is essentially declaring the Senate’s short off-and-on legislative sessions a sham intended to block his appointments. The White House is expecting considerable criticism and perhaps a court challenge, but says Obama was left with little choice to get the consumer agency fully running after months of stalemate. Acting right after Tuesday’s GOP presidential caucuses in Iowa, Obama is likely diverting voters’ attention and trying to show them that he will advocate for the middle class, no matter what the opposition. It is his most bare-knuckle initiative so far in his campaign of taking action without waiting for Congress. Obama is expected to announce his decision later today during an economic event in Cordray’s home state of Ohio, with Cordray alongside him. Read the full story from The Associated Press here.