United States consumer finance agency lawyer sides with Trump over succession

  • United States consumer finance agency lawyer sides with Trump over succession

United States consumer finance agency lawyer sides with Trump over succession

That prompted a lawsuit from Leandra English, who was appointed the bureau's deputy director Friday after Cordray resigned. English's legal position is thus based on the premise that the CFPA provision that states the Deputy Director shall serve as Acting Director in the Director's "absence or unavailability" covers a vacancy created by the CFPB Director's resignation.

The two dueling directors embody widely differing visions regarding the future of the agency, which was established under the 2010 Dodd-Frank Act and adopted an aggressive agenda under the Obama administration, targeting financial companies for practices that it considers unfair or abusive. Getting a permanent replacement approved by the Senate could take months.

While serving as a congressman before joining Trump's administration, Mulvaney sponsored bills to eliminate the CFPB and backed other legislation to put it under closer legislative oversight.

For all intents and purposes, the CFPB now had two acting directors - both embroiled in a messy battle for the agency's top spot.

Trump announced he was picking Mulvaney within a few hours of Cordray's announcement on Friday.

Office of Management and Budget Director Mick Mulvaney started his first day as interim head of the Consumer Financial Protection Bureau (CFPB), where he was greeted by a lawsuit and a public outcry denouncing his appointment.

"Together we have made a real and lasting difference that has improved people's lives", he said, remarking on his time at the agency, which is charged with overseeing consumer financial rights (specifically in terms of student loans, credit cards, mortgages, and banking institutions) and monitoring Wall Street, and was created following the 2008 financial crisis.

Sanders also cited a memo sent by Mary E. McLeod, the consumer bureau's general counsel, who said she had found an opinion by the Justice Department's Office of Legal Counsel written Saturday in support of Mulvaney's appointment under the Vacancies Reform Act "on point and persuasive". They spoke on condition of anonymity to discuss the White House's thinking.

Mick Mulvaney, Trump's White House budget director and the president's pick to run the agency, brought doughnuts.

"The President's attempt to install a White House official at the head of an independent agency-while allowing that official to simultaneously serve in the White House-is unprecedented", Deepak Gupta, English's lawyer, said in a statement. Judge Timothy Kelly, a Trump appointee approved recently by the Senate, will hear arguments on the case late Monday afternoon.

Sarah Huckabee Sanders, the White House press secretary, commented on the disarray: "It is unfortunate that Mr. Cordray chose to put his political ambition above the interests of consumers with this stunt", she said in a statement.

Mulvaney is temporarily heading up the agency as a showdown over leadership heads to the court.

He also has been unsparing in his criticism of the CFPB.

U.S. Rep. Jeb Hensarling, chairman of the powerful House Financial Services Committee and a longtime critic of Cordray, said Mulvaney would "fight not only to protect consumers from force, fraud, and deception but will protect them from government interference with competitive, innovative markets and help preserve their fundamental economic opportunities and liberties".

"The Consumer Financial Protection Bureau, or CFPB, has been a total disaster as run by the previous Administrations pick".