President Barack Obama on Sunday chose former Ohio Attorney General Richard Cordray to head the new agency charged with protecting U.S. consumers from abusive mortgage lending practices and hidden credit card fees.
The pick allows Obama to sidestep some of the controversy he would have faced had he nominated Elizabeth Warren, who is credited with conceiving the idea for the new consumer agency but is viewed by many on Wall Street as a foe.
The president is still likely to face a big fight with Republicans on the pick of Cordray, a close Warren ally who has a record of cracking down on the financial industry. His selection requires Senate confirmation.
"He's from the same mold as Elizabeth Warren but he is easier to get approved," said Matt McCormick, portfolio manager at Bahl & Gaynor Investment Counsel Inc in Cincinnati, Ohio.
He said Obama was "bowing to the inevitable" in choosing the lesser-known Cordray over the more controversial Warren.
