Exclusive - Richard Cordray Extended Interview Pt. 2

  • Aired:  01/08/14
  •  | Views: 27,557

In this exclusive, unedited interview, the Consumer Financial Protection Bureau's Richard Cordray talks Elizabeth Warren, economic fraud and banking regulation. (6:13)

>> Jon: WHAT SUP, EVERYBODYWE'RE BACK.

WE'RE TALKING TO RICHARD CORDDRYWHO IS THE HEAD OF A BUREAU

WHOSE NAME I HAVE FORGOTTENALREADY.

[LAUGHTER]I DO UNDERSTAND THAT IN BUSINESS

REGULATION CAN BECOME ONEROUS.

RED TAPE AND BUREAUCRACY CAN BEA REAL DRAG ESPECIALLY ON A

SMALL BUSINESS.

ARE YOU DOING ANYTHING TO ALSOIMPLEMENT LEAN REGULATIONS?

SMART REGULATIONS?

THAT REGARD?

>> FIRST OF ALL, I DON'T THINKOUR REGULATIONS SHOULD BE

REGARDED AS A DRAG BY ANYBODY INTHE MORTGAGE MARKET.

WHAT ARE YOU TALKING ABOUT?

WE MAKE A LOAN TO SOMEBODY ANDYOU HAVE TO BE ABLE TO MAKE SURE

THEY ARE ABLE TO REPAY THE LOAN.

IT'S BASIC BANKING 101.

>> Jon: THEY TALK ABOUT THEMONEY IT COSTS TO BRING

EVERYTHING UP TO SNUFF.

>> YES.

IT SHOULD COST SOME MONEY TOBRING THINGS UP TO SNUFF.

THEY SHOULD HAVE BEEN SPENDINGTHAT MONEY BEFOREHAND BUT WE

HAVE TO MAKE THEM WE HAVE TOMAKE THEM.

>> Jon: DOES IT PUT THE SMALLER BUSINESS AT A

DISADVANTAGE TO THE LARGERCORPORATIONS WHO CAN

SPEND MILLIONS OF DOLLARS OR ARETHERE TWO TIERS WHERE A SMALLER

BUSINESS CAN BE MORE FLUID?

I DO THINK IT CAN BE A BURDEN, IDO.

>> I THINK IT'S ABSOLUTELY FAIR.

SENATOR WARREN AND I TALKEDABOUT THIS WHEN I WORKED AT THE

BUREAU IN THE EARLY DAYS.

BUREWE'RE TRYING TO TIER THEREGULATIONS TO TREAT

SMALLER BANKSAND CREDIT UNIONS DIFFERENTLY

BECAUSE WE DON'T THINK THEYWERE THE ONES WHO CAUSED THE

CRISIS BUT THE BIGGER BANKSCAUSED TREMENDOUS PROBLEMS.

THEY BLEW UP THE ECONOMY.

CAUSED UNTOLD HARM TO MANYPEOPLE WHO LOST JOBS AND HOMES

AND HEALTH.

IT'S SOMETHING THAT SHOULD NOTHAPPEN AGAIN.

>> Jon: WHAT IS THE RESISTANCETO A TYPE OF ACCREDITATION

PROCESS LIKE THEY HAVE WITH AMEDICAL LICENSE LIKE THEY HAVE

WITH A DISBARMENT OF A LAWYERFOR FINANCIAL PRACTICES THAT ARE

FRAUDULENT OR MISLEADING?

>> YOU KNOW, I HAVEN'T HEARD ANYTALK ABOUT THAT AT THIS POINT.

>> Jon: REALLY, I JUST HEARD AGUY.

[ LAUGHTER ]>> I NOW HAVE HEARD --

[LAUGHTER]>> Jon: IS THAT SOMETHING THAT

IS NOT IN ANY WAY FEASIBLEBECAUSE I ALWAYS HEAR BANKING IS

JUST TOO -- YOU DON'T UNDERSTANDFINANCE AND BANKING IT'S SO

COMPLEX.

BECAUSE MEDICAL SCIENCE, THAT'SSIMPLE.

[ LAUGHTER ]BUT SOMEHOW IT'S PORTRAYED THAT

WE DON'T UNDERSTAND.

THEY HAD TO COMMIT THESE MASSIVEFRAUDS.

[ LAUGHTER ]>> I ACTUALLY THINK PEOPLE DO

UNDERSTAND THE BASICS OFLENDING.

THE TROUBLE IS IT BECAME SOCOMPLICATED FOR THE AVERAGE

CONSUMER, LOTS OF FINE PRINT,LOTS OF SURPRISES.

YOU THOUGHT YOU HAD A DEALTHERE.

AND THEN YOU ARE FAILING.

WHAT WE NEED TO DO IS SIMPLIFYBANKING AND GET IT BACK TO

BASICS ON THE LENDING.

IN OTHER AREAS WE SEE ABUSE OFCONSUMERS.

CREDIT REPORTING COMPANIES.

MANY PEOPLE DON'T REALIZE WHATEFFECT IT HAS ON YOUR LIFE WHAT

IS YOUR FILE, WHETHER IT'SACCURATE.

A HEARING IN DETROIT, AN ELDERLYWOMAN STANDS UP AND SAYS SHE HAS

A PROBLEM.

THE CREDIT RECORDING COMPANIESTHINK I'M DEAD. THEY HAVE ME

DOWN AS DECEASED AND I CAN'TCONVINCE THEM OTHERWISE.

HOW DO I GET THAT FIXED?

>> Jon: LET ME ASK YOU AQUESTION: WAS SHE?

[LAUGHTER]>> SHE SEEMED LIVELY TO ME.

SHE FELT THEY VIEWED HER ASNOBODY AND WOULDN'T FIX THE

PROBLEM AND THAT'S NOT RIGHT.

>> Jon: ISN'T THERE A CERTAINPURPOSEFUL OBTUSENESS TO

DOCUMENTATION.

THEY COMPLAIN ABOUT RED TAPE BUTI DON'T KNOW ANYBODY THAT IF YOU

GET THE PROSPECTUS ON CREDITCARDS I DON'T KNOW ANYBODY.

IT'S LIKE THE iTUNES AGREEMENTTHANK GOD THEY HAVE THE BUTTON

WHERE YOU CAN JUST GO, I AGREE.

BECAUSE NOBODY IS GOING TOSCROLL THROUGH THAT. ISN'T THAT

IN MANY WAYS PURPOSEFUL>> THERE'S A TERM THAT YOU'LL

LOVE CONFUSE OPOLY.

>> Jon: WHAT?

IF THEY CONFUSE THE CONSUMERENOUGH THEY WON'T KNOW WHAT

CHOICE THEY'RE MAKING.

IT'S A TERM THAT HAS COME TODESCRIBE THE GOBBLDYGOOK

YOU GET IN THE FINE PRINT.

>> Jon: SHOULDN'T THERE BE ASHORT FORM AND CERTAINLY THAT

CLEARLY SPELLS OUT.

>> THAT'S SOMETHING WE'REWORKING ON.

THERE'S SOMETHING IN THEMORTGAGE MARKET CALLED KNOW

BEFORE YOU OWE.

POINT OUT THE PROMINENT THINGS.

THESE ARE THE KEY TERMS ANDCOMPARE MORTGAGES ONE TO

ANOTHER.

WE THINK IF THE CONSUMER IS PUTIN THE POSITION OF KNOWING WHAT

THE CHOICES ARE THEY CAN MAKEGOOD CHOICES.

IT HAS TO BE THEIR CHOICE.

I HAVE CONFIDENCE THEY'LL MAKEIT RIGHT IF WE MAKE THE MARKET

WORK FAIRLY FOR THEM.

>> Jon: THE THING PEOPLEMISUNDERSTAND THOSE WHO VALUE

A CERTAIN AMOUNT OF REGULATIONIN THE MARKET, IT'S

NOT ANTIFREE MARKET ORANTICAPITALISM, IT'S FAIRNESS.

IT'S WANTING A CERTAINSIMPLICITY.

THEY HAVE AN ABILITY.

YOU ARE NOT THINKING ABOUT IT.

YOU HAVE A LIFE.

YOU HAVE KIDS AND A HOUSE ANDTHINGS YOU NEED TO DO.

>> WE KNOW HOW MUCH THAT CAN BE.

>> Jon: IT'S DISTRACTING.

THAT'S WHY I WON'T TALK TO THEM.

I GET HOME AND I HAVE A SMALL --I GUESS WOULD YOU CALL IT A

CHAMBER ROOM, AND I PUT ON ASUIT THAT MANY WOULD SAY LOOKS

LIKE A DEEP SEA DIVING BELLPLAYS A VIRTUAL SCREEN OF ESPN

AND -- WHAT ARE WE TALKINGABOUT?

[LAUGHTER]ARE YOU FEELING COMFORTABLE?

FEELING LIKE YOU ARE MAKINGHEADWAY?

>> I DO FEEL THAT, YES.

>> Jon: YOU ARE NOTGOBBLING IT UP WITH RED TAPE?

>> WE HAVE TO FIGHT THROUGH IT.

>> Jon: NICE TO SEE YOU SIR.

RICHARD CORDRAY.

[CHEERS AND APPLAUSE]

>> Jon: WHAT SUP, EVERYBODYWE'RE BACK.

WE'RE TALKING TO RICHARD CORDDRYWHO IS THE HEAD OF A BUREAU

WHOSE NAME I HAVE FORGOTTENALREADY.

[LAUGHTER]I DO UNDERSTAND THAT IN BUSINESS

REGULATION CAN BECOME ONEROUS.

RED TAPE AND BUREAUCRACY CAN BEA REAL DRAG ESPECIALLY ON A

SMALL BUSINESS.

ARE YOU DOING ANYTHING TO ALSOIMPLEMENT LEAN REGULATIONS?

SMART REGULATIONS?

THAT REGARD?

>> FIRST OF ALL, I DON'T THINKOUR REGULATIONS SHOULD BE

REGARDED AS A DRAG BY ANYBODY INTHE MORTGAGE MARKET.

WHAT ARE YOU TALKING ABOUT?

WE MAKE A LOAN TO SOMEBODY ANDYOU HAVE TO BE ABLE TO MAKE SURE

THEY ARE ABLE TO REPAY THE LOAN.

IT'S BASIC BANKING 101.

>> Jon: THEY TALK ABOUT THEMONEY IT COSTS TO BRING

EVERYTHING UP TO SNUFF.

>> YES.

IT SHOULD COST SOME MONEY TOBRING THINGS UP TO SNUFF.

THEY SHOULD HAVE BEEN SPENDINGTHAT MONEY BEFOREHAND BUT WE

HAVE TO MAKE THEM WE HAVE TOMAKE THEM.

>> Jon: DOES IT PUT THE SMALLER BUSINESS AT A

DISADVANTAGE TO THE LARGERCORPORATIONS WHO CAN

SPEND MILLIONS OF DOLLARS OR ARETHERE TWO TIERS WHERE A SMALLER

BUSINESS CAN BE MORE FLUID?

I DO THINK IT CAN BE A BURDEN, IDO.

>> I THINK IT'S ABSOLUTELY FAIR.

SENATOR WARREN AND I TALKEDABOUT THIS WHEN I WORKED AT THE

BUREAU IN THE EARLY DAYS.

BUREWE'RE TRYING TO TIER THEREGULATIONS TO TREAT

SMALLER BANKSAND CREDIT UNIONS DIFFERENTLY

BECAUSE WE DON'T THINK THEYWERE THE ONES WHO CAUSED THE

CRISIS BUT THE BIGGER BANKSCAUSED TREMENDOUS PROBLEMS.

THEY BLEW UP THE ECONOMY.

CAUSED UNTOLD HARM TO MANYPEOPLE WHO LOST JOBS AND HOMES

AND HEALTH.

IT'S SOMETHING THAT SHOULD NOTHAPPEN AGAIN.

>> Jon: WHAT IS THE RESISTANCETO A TYPE OF ACCREDITATION

PROCESS LIKE THEY HAVE WITH AMEDICAL LICENSE LIKE THEY HAVE

WITH A DISBARMENT OF A LAWYERFOR FINANCIAL PRACTICES THAT ARE

FRAUDULENT OR MISLEADING?

>> YOU KNOW, I HAVEN'T HEARD ANYTALK ABOUT THAT AT THIS POINT.

>> Jon: REALLY, I JUST HEARD AGUY.

[ LAUGHTER ]>> I NOW HAVE HEARD --

[LAUGHTER]>> Jon: IS THAT SOMETHING THAT

IS NOT IN ANY WAY FEASIBLEBECAUSE I ALWAYS HEAR BANKING IS

JUST TOO -- YOU DON'T UNDERSTANDFINANCE AND BANKING IT'S SO

COMPLEX.

BECAUSE MEDICAL SCIENCE, THAT'SSIMPLE.

[ LAUGHTER ]BUT SOMEHOW IT'S PORTRAYED THAT

WE DON'T UNDERSTAND.

THEY HAD TO COMMIT THESE MASSIVEFRAUDS.

[ LAUGHTER ]>> I ACTUALLY THINK PEOPLE DO

UNDERSTAND THE BASICS OFLENDING.

THE TROUBLE IS IT BECAME SOCOMPLICATED FOR THE AVERAGE

CONSUMER, LOTS OF FINE PRINT,LOTS OF SURPRISES.

YOU THOUGHT YOU HAD A DEALTHERE.

AND THEN YOU ARE FAILING.

WHAT WE NEED TO DO IS SIMPLIFYBANKING AND GET IT BACK TO

BASICS ON THE LENDING.

IN OTHER AREAS WE SEE ABUSE OFCONSUMERS.

CREDIT REPORTING COMPANIES.

MANY PEOPLE DON'T REALIZE WHATEFFECT IT HAS ON YOUR LIFE WHAT

IS YOUR FILE, WHETHER IT'SACCURATE.

A HEARING IN DETROIT, AN ELDERLYWOMAN STANDS UP AND SAYS SHE HAS

A PROBLEM.

THE CREDIT RECORDING COMPANIESTHINK I'M DEAD. THEY HAVE ME

DOWN AS DECEASED AND I CAN'TCONVINCE THEM OTHERWISE.

HOW DO I GET THAT FIXED?

>> Jon: LET ME ASK YOU AQUESTION: WAS SHE?

[LAUGHTER]>> SHE SEEMED LIVELY TO ME.

SHE FELT THEY VIEWED HER ASNOBODY AND WOULDN'T FIX THE

PROBLEM AND THAT'S NOT RIGHT.

>> Jon: ISN'T THERE A CERTAINPURPOSEFUL OBTUSENESS TO

DOCUMENTATION.

THEY COMPLAIN ABOUT RED TAPE BUTI DON'T KNOW ANYBODY THAT IF YOU

GET THE PROSPECTUS ON CREDITCARDS I DON'T KNOW ANYBODY.

IT'S LIKE THE iTUNES AGREEMENTTHANK GOD THEY HAVE THE BUTTON

WHERE YOU CAN JUST GO, I AGREE.

BECAUSE NOBODY IS GOING TOSCROLL THROUGH THAT. ISN'T THAT

IN MANY WAYS PURPOSEFUL>> THERE'S A TERM THAT YOU'LL

LOVE CONFUSE OPOLY.

>> Jon: WHAT?

IF THEY CONFUSE THE CONSUMERENOUGH THEY WON'T KNOW WHAT

CHOICE THEY'RE MAKING.

IT'S A TERM THAT HAS COME TODESCRIBE THE GOBBLDYGOOK

YOU GET IN THE FINE PRINT.

>> Jon: SHOULDN'T THERE BE ASHORT FORM AND CERTAINLY THAT

CLEARLY SPELLS OUT.

>> THAT'S SOMETHING WE'REWORKING ON.

THERE'S SOMETHING IN THEMORTGAGE MARKET CALLED KNOW

BEFORE YOU OWE.

POINT OUT THE PROMINENT THINGS.

THESE ARE THE KEY TERMS ANDCOMPARE MORTGAGES ONE TO

ANOTHER.

WE THINK IF THE CONSUMER IS PUTIN THE POSITION OF KNOWING WHAT

THE CHOICES ARE THEY CAN MAKEGOOD CHOICES.

IT HAS TO BE THEIR CHOICE.

I HAVE CONFIDENCE THEY'LL MAKEIT RIGHT IF WE MAKE THE MARKET

WORK FAIRLY FOR THEM.

>> Jon: THE THING PEOPLEMISUNDERSTAND THOSE WHO VALUE

A CERTAIN AMOUNT OF REGULATIONIN THE MARKET, IT'S

NOT ANTIFREE MARKET ORANTICAPITALISM, IT'S FAIRNESS.

IT'S WANTING A CERTAINSIMPLICITY.

THEY HAVE AN ABILITY.

YOU ARE NOT THINKING ABOUT IT.

YOU HAVE A LIFE.

YOU HAVE KIDS AND A HOUSE ANDTHINGS YOU NEED TO DO.

>> WE KNOW HOW MUCH THAT CAN BE.

>> Jon: IT'S DISTRACTING.

THAT'S WHY I WON'T TALK TO THEM.

I GET HOME AND I HAVE A SMALL --I GUESS WOULD YOU CALL IT A

CHAMBER ROOM, AND I PUT ON ASUIT THAT MANY WOULD SAY LOOKS

LIKE A DEEP SEA DIVING BELLPLAYS A VIRTUAL SCREEN OF ESPN

AND -- WHAT ARE WE TALKINGABOUT?

[LAUGHTER]ARE YOU FEELING COMFORTABLE?

FEELING LIKE YOU ARE MAKINGHEADWAY?

>> I DO FEEL THAT, YES.

>> Jon: YOU ARE NOTGOBBLING IT UP WITH RED TAPE?

>> WE HAVE TO FIGHT THROUGH IT.

>> Jon: NICE TO SEE YOU SIR.

RICHARD CORDRAY.

[CHEERS AND APPLAUSE]

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