President Obama has announced his nomination of former Ohio Attorney General Richard Cordray to lead the newly-created Consumer Financial Protection Bureau. The CFPB, which will be charged with writing rules and supervising the activities of the nations' largest banks, officially will open its doors on July 21.

Cordray's appointment, which must still be confirmed by the Senate, comes as a surprise to some, who expected the position to go to Elizabeth Warren, who was serving as interim director of the CFPB. Warren was a popular nominee choice among many Democrats, but would have faced strong opposition from Senate Republicans.

In a White House news release, Obama thanked Warren for her "extraordinary work" standing up the new agency over the past year. "This agency was Elizabeth's idea, and through sheer force of will, intelligence, and a bottomless well of energy, she has made, and will continue to make, a profound and positive difference for our country,” President Obama said.

In that same speech, President Obama credited Cordray with spending his career "advocating for middle-class families, from his tenure as Ohio's Attorney General to his most recent role as heading up the enforcement division at the CFPB and looking out for ordinary people in our financial system."

In recent months, Cordray, who was a keynote speaker at Compliance Week 2011, has served as Chief of Enforcement at the Bureau. He previously served as Attorney General of Ohio from January 2009 to January 2011.

Obama is set to make his formal announcement of Cordray's appointment at 1:05 p.m. ET today. Watch it live: http://www.whitehouse.gov/live

U.S. Chamber Speaks Out

In related news, the U.S. Chamber of Commerce called on the Administration July 18 to make the CFPB accountable to Congess and urged the Senate to seek clear answers from Cordray about how he would use the powers of the bureau if he is confirmed as its first director.

Since the enactment of the Dodd-Frank Act, the Chamber said it has serious concerns about the CFPB's "unprecedented concentration of power in a single director." The Chamber has advocated for the bureau to be led by a five-member bipartisan commission to ensure political and policy balance and for it to be subject to the annual appropriations process.

Unlike most other federal agencies, the CFPB concentrates powers in the hand of the director, who is the bureau's only Senate-confirmed position and, once confirmed, cannot even be removed by the President, except for cause.  The agency's budget is not subject to review or approval by either the President or the Congress. And it is specifically exempted from having to coordinate its rules with other agencies, including the White House, to ensure consistency with other regulations.

“The CFPB's structure makes its director one of the most unaccountable officials Washington has ever seen,” said David Hirschmann, president and CEO of the Chamber's Center for Capital Markets Competitiveness.  “The director is the only Senate-confirmed position at this new federal agency, putting unprecedented powers to regulate a large part of our economy in the hands of a single individual with virtually no checks and balances. Congress must use this confirmation process as an opportunity to get clear answers on how the new $500 million agency will work."