After abandoning his post at the Consumer Financial Protection Bureau to pursue his power-hungry political ambitions, Richard Cordray’s legacy of partisan overreach as a Washington D.C. Bureaucrat continues to plague his gubernatorial campaign in Ohio. A lawsuit filed by Cordray while he ran the CFPB against the National Collegiate Student Loan Trusts is currently threatening to destabilize the nation’s student loan market, making private student loans “more difficult to obtain.”
In a new column for Townhall.com Shannon Watkins writes that the lawsuit is “the result of an egregious overreach of bureaucratic power on the part of the CFPB, which at the time of filing was headed by now Ohio gubernatorial candidate, Richard Cordray.” Watkins also highlighted that the conditions of the lawsuit’s pending settlement were the result of a deal between Cordray and a wealthy campaign donor who “stands to profit from the CFPB’s unlawful intervention.”
While Cordray thinks he can fool Ohio voters into believing he stood up for them at the CFPB, his record of overreach is still costing the American people over six months after he stepped down. As Ohioans learn more about Cordray’s history of sweetheart deals and partisan maneuvering to advance his interests at the expense of taxpayers, the less they will trust him to lead their state.
Shannon Watkins writes for Townhall.com:
“Private student loans might soon become more difficult to obtain. In fact, the future of the entire securitization industry could be at stake—contingent on a pending settlement in a Delaware federal court between the Consumer Financial Protection Bureau (CFPB) and the National Collegiate Student Loan Trusts (NCSLT).
Arguably, the lawsuit is the result of an egregious overreach of bureaucratic power on the part of the CFPB, which at the time of filing was headed by now Ohio gubernatorial candidate, Richard Cordray…
The injustice of the suit is highlighted further by the fact that the conditions of the settlement are based on a deal struck between Cordray and hedge fund manager (and Obama donor) Donald Uderitz.
Even though Uderitz’s firm Vantage Capital Group ‘owns’ the Trusts, Uderitz stands to profit from the CFPB’s unlawful intervention.
That’s because Cordray’s proposed settlement would allow Uderitz to gain sole control over all the Trusts—virtually shutting out the other parties to the Trusts entirely (and thereby violating the terms of the Trust agreements). Additionally, the proposed consent judgment formally grants Uderitz access to and control of student loan debt servicing.
Both Cordray and Uderitz stood to benefit from such an arrangement. Anticipating his upcoming gubernatorial run in Ohio, Cordray would be able to end his time at the CFPB as a ‘hero’ who punished the malpractice of debt collectors. For his part, Uderitz is posed to make a profitable return on a virtually worthless investment.”