CFPB's new acting director sues Trump administration

CFPB's new acting director sues Trump administration

The White House then named its own interim leader.

With the Trump administration focusing on rolling back or streamlining governmental regulations across the board, the CFPB has been held up as a prime example of overregulation by people such as Mulvaney himself, who called the CFPB "a wonderful example of how a bureaucracy will function if it has no accountability to anybody" in a 2014 interview with the Credit Union Times. The spark? Two bureaucrats vying for control of the Consumer Financial Protection Bureau.

With the future of the CFPB's leadership in doubt, both English and Mulvaney are expected to show up at the CFPB on Monday. Departing director Richard Cordray, an Obama appointee long criticized by congressional Republicans as overzealous, had cited a different rule in saying the law was on his side. The administration later released an Opinion of the Department of Justice's Office of Legal Counsel ("OLC") that seeks to harmonize the Dodd-Frank Act with the Vacancies Reform Act, which generally governs the President's authority to make appointments to fill vacancies in federal agencies. "We may even see lawsuits that have been filed dropped". Getting a permanent replacement approved by the Senate could take months.

"The President should fire her immediately and anyone who disobeys Director Mulvaney's orders should also be fired summarily", Cotton said. McLeod advised all CFPB staff "to act consistently with the understanding that Director Mulvaney is the acting director of the CFPB".

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White House budget director Mick Mulvaney on Monday ordered a 30-day hiring and regulatory freeze at the Consumer Financial Protection Bureau, where his controversial takeover as boss is being contested legally, The Hill reports. "Financial Institutions have been devastated and unable to properly serve the public".

A person with knowledge of the situation said that general counsel Mary McLeod, who was appointed by Mr Cordray, had told staff to follow the directions of Mr Mulvaney. They spoke on condition of anonymity to discuss the White House's thinking. Hours later, the Republican president named Mulvaney as acting head, plunging the bureau into uncertainty. "I will be here until the court or the president tells me otherwise".

But the agency's outgoing director has appointed a short-term successor. The same could be said of actions taken by Acting Director Mulvaney - but his actions are far more likely to be ratified by the next Director.

"Whether that is a good thing or not is a different calculation", she said. A founder of the hard-right House Freedom Caucus, he was elected in 2010 as part of a tea party wave that brought many critics of the US budget deficit to office. In this case, that person is OMB director (and human personification of nearly every negative Irish stereotype) Mick Mulvaney.

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

Pelosi says in a statement that the White House wants "to put the ringleader of its unsafe, anti-consumer protection policies in charge" of the agency.

Democrats have seized upon Mulvaney's words in criticizing his appointment to the agency.

Joined by Rep. Jamie Raskin, consumer advocates gathered outside the headquarters of the Consumer Financial Protection Bureau on November 27 to defend the mission of an agency that's delivered $12 billion in relief to over 29 million Americans in its short life.

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