Head of US consumer agency to step down

The head of a US agency established to protect banking consumers after the financial crisis announced his resignation Wednesday, clearing the path for another pro-business appointment by President Donald Trump.

Richard Cordray, who was the first chief of the Consumer Financial Protection Bureau and an appointee of President Barack Obama, plans to leave the agency by the end of the month, he said in an email to staff.

"Together we have made a real and lasting difference that has improved people's lives," Cordray said, noting the agency recovered $12 billion for consumers after the agency was created in the aftermath of the 2008 financial crisis.

The announcement came less than three weeks after the Senate, in a 51-50 vote settled by Vice President Mike Pence, killed a CFPB rule that permitted lawsuits against banks or credit card companies. 

The measure was championed by consumer advocates, but loathed by Wall Street.

News of Cordray's impending departure drew contrasting reactions from banking policy leaders in both political parties.

Cordray "held big banks accountable. He is a dedicated public servant and a tireless watchdog for American consumers," said Democratic Senator Elizabeth Warren of Massachusetts.

"The new director of the CFPB must be someone with a track record of protecting consumers and holding financial firms responsible when they cheat people," Warren added.

"This is no place for another Trump-appointed industry hack."

But Republican Senator Tom Cotton of Arkansas greeted the news, saying Cordray "ran an undemocratic agency like an autocrat and stayed well past his welcome, hanging onto his position in an attempt to thwart a duly elected president—and, by extension, the American people