WASHINGTON–House Financial Services Committee Chairman Jeb Hensarling (R-TX), a strong opponent of the CFPB, is now asking for an investigation of whether its executive director has violated federal election law.
In a letter to the Office of Special Counsel, Hensarling has asked for an investigation of whether CFPB Director Richard Cordray broke the Hatch Act, which bans federal employees from running for elected office.
Specifically, the violation relates to reports that Cordray, who was formerly the Democratic Ohio attorney general, plans to resign in September to run for Ohio governor. The law prevents Cordray from formally launching any campaign until he exits the federal agency.
The Hill is reporting that the speculation has only increased as the result of an Ohio Supreme Court justice telling Cleveland.com that Cordray will run for the office, citing a mutual friend.
Hensarling wants the special counsel to investigate whether Cordray broke the law by allegedly asking the mutual friend to tell a potential primary rival about his intention to run, according to the Hill. If true, the congressman alleged it “may reasonably be construed as evidence that he undertook a campaign to secure a nomination for partisan political office in contravention of the law.”
"I can't speculate on the validity of the allegations, but it is clear that this letter is a sign of the times,” noted John McKechnie, senior partner with Total Spectrum, a Washington advocacy firm, and a veteran of CUNA and NCUA. “Motives are under constant scrutiny, although Director Cordray has lived in that world during his entire tenure, so this shouldn't come as a surprise to him or anyone else."