Civic Register
| 11.29.17

President Trump Wins Initial Round In Battle Over Control of CFPB

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What’s the story?

After an initial flurry of excitement following the departure of Richard Cordray last Friday as Director of the Consumer Financial Protection Bureau (CFPB) over who would get to appoint an interim director, the court has sided with President Trump, reports the New York Times.

The deputy director appointed by Cordray hours before his departure, Leandra English, has vowed to continue fighting the decision in the courts.

Why does it matter?

The CFPB was set up via the Dodd-Frank Act following the Great Recession, as an independent agency tasked with protecting consumers from predation by the financial industry. According to Democrats, it has been enormously successful, winning millions of dollars back for consumers.

Republicans have historically been hostile to the agency, arguing that the agency regularly engages in federal overreach and is hurting the financial sector.

When Cordray left on Friday he appointed Deputy Director Leandra English to head the CFPB until a new director could be nominated and confirmed. Cordray, English, and various Democratic lawmakers maintain that the Dodd-Frank Act specifically empowered the director to appoint a successor.

President Trump, at the same time, appointed current head of the Office of Management and Budget (OMB) Mick Mulvaney to the position of interim director, according to the his rights under the Federal Vacancies Reform Act.

Sunday English filed a court case requesting a temporary restraining order to prevent Mulvaney from assuming the position. Now, a federal district court judge has ruled in the administration’s favor, allowing the president to install Mulvaney while the nomination and confirmation process proceeds. Mulvaney will also continue as head of the OMB.

Ms. English’s lawyers are weighing options to continue the legal fight.

What do you think?

Should Ms. English continue to fight to fulfill the duties the former director assigned to her? Will Mulvaney rein in the CFPB, and is that a good thing?

Tell us in the comments what you think, then use the Take Action button to tell your reps!

— Asha Sanaker

(Photo Credit: Gage Skidmore via Flickr / Creative Commons)*

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