Arbitration Clauses In, Cordray On His Way Out

A rule years in the making that would have allowed consumers to file class actions against financial institutions has been squelched by Congress. Democrats and consumer groups consider the move “a gift to financial institutions like Wells Fargo and Equifax,” reports the New York Times. Their efforts weren’t without traction, but in the end, Vice President Mike Pence cast the tie-breaking vote in the Senate, while the House had already passed its version in July. The rule had been spearheaded by the chief of the Consumer Financial Protection Bureau, Richard Cordray, who has proved to be way too aggressive a consumer advocate for the taste of most Republicans. His five-year term ends next year, but he’s expected to leave early to run for governor of Ohio. The bridling of arbitration clauses apparently won’t be part of his legacy.