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Outgoing US consumer chief moves to thwart Trump by naming own successor Outgoing US consumer chief moves to thwart Trump by naming own successor
(about 2 hours later)
The director of the Consumer Financial Protection Bureau (CFPB) resigned on Friday and named his own successor, leading to an open conflict with Donald Trump, who announced a different person as acting head of the agency.The director of the Consumer Financial Protection Bureau (CFPB) resigned on Friday and named his own successor, leading to an open conflict with Donald Trump, who announced a different person as acting head of the agency.
That means there are now effectively two acting directors of the CFPB, when there should only be one. That means there are now effectively two acting directors of the CFPB.
Typically an acting director position would be filled according to the Federal Vacancies Reform Act (FVRA) of 1998. But along with his resignation, Richard Cordray elevated Leandra English, the agency’s chief of staff, to the deputy director position. Typically an acting director position would be filled according to the Federal Vacancies Reform Act (FVRA) of 1998. But along with his resignation, Richard Cordray elevated Leandra English, the agency’s chief of staff, to be deputy director.
Under the Dodd-Frank Act that created the CFPB, English would thus become acting director. Cordray, a Barack Obama appointee, cited the law when he promoted English, a longtime CFPB employee and ally. Under the Dodd-Frank Act that created the CFPB, English would thus become acting director. Cordray, a Democrat and Barack Obama appointee, cited the law when he promoted English, a longtime ally.
Within a few hours, Trump announced his own acting director of the agency: Mick Mulvaney, currently director of the Office of Management and Budget. Mulvaney had widely been expected to be Trump’s temporary pick for the bureau until a permanent one could be found. Within a few hours, Trump announced his own acting director: Mick Mulvaney, currently director of the Office of Management and Budget. The former congressman, a rightwing budget hawk, had widely been expected to be Trump’s temporary pick for the bureau until a permanent one could be found.
Mulvaney is a long-time critic of the CFPB and has wanted the agency’s authority significantly curtailed. The difference between English and Mulvaney running the agency would be significant.Mulvaney is a long-time critic of the CFPB and has wanted the agency’s authority significantly curtailed. The difference between English and Mulvaney running the agency would be significant.
The person nominated to be director of the CFPB requires confirmation by the Senate, and it could be many weeks or months before the person would be able to step into the role permanently. On Saturday Maxine Waters of California, the top Democrat on the House financial services committee, issued a statement in which she said Mulvaney was an “unacceptable” choice to lead the CFPB because of his “noxious” views towards its mission to protect consumers.
Cordray’s move was aimed at allowing his favored successor to keep running the agency for as long as possible. “As a member of the House financial services committee, Mr Mulvaney called the Consumer Bureau a ‘joke’,” Waters wrote. “He was also the original co-sponsor of a bill to completely eliminate the Consumer Bureau, and supported other legislation to harmfully roll back Wall Street reform.”
On Saturday senior Trump administration officials said they expected no trouble when Mulvaney shows up for work on Monday. Speaking on condition of anonymity to discuss the White House’s thinking, the officials called Trump’s appointment a “routine move” under the FVRA. The person nominated to be director of the CFPB requires confirmation by the Senate, and it could be many weeks or months before the person would be able to step into the role permanently. Cordray’s move was aimed at allowing his favored successor to keep running the agency for as long as possible.
On Saturday senior Trump administration officials said they expected no trouble when Mulvaney shows up for work on Monday. Speaking on condition of anonymity to discuss the White House’s thinking, the officials said Trump’s appointment was a “routine move” under the FVRA.
One official described Cordray’s move as designed to provoke a legal battle.One official described Cordray’s move as designed to provoke a legal battle.
Cordray announced earlier in November that he would resign by the end of the month. There is wide speculation that he is resigning in order to run as a Democrat for governor in his home state of Ohio. Cordray announced earlier in November that he would resign by the end of the month. There is wide speculation that he will run for governor in his home state of Ohio.
The CFPB was created as part of the laws passed following the 2008 financial crisis and subsequent recession. The agency was given a broad mandate to be a watchdog for consumers when they deal with banks and credit card, student loan and mortgage companies, as well as debt collectors and payday lenders. The CFPB was created as part of laws passed following the 2008 financial crisis and subsequent recession. The agency was given a broad mandate to be a watchdog for consumers when they deal with banks and credit card, student loan and mortgage companies, as well as debt collectors and payday lenders. Nearly every American who deals with banks or a credit card company or has a mortgage has been affected by rules the agency put in place.
Nearly every American who deals with banks or a credit card company or has a mortgage has been affected by new rules the agency put in place. Cordray used the agency’s mandate aggressively, which often made him a target for the banking industry’s Washington lobbyists and Republicans in Congress who believed he was overreaching in his role and called the CFPB a “rogue agency”.
Cordray used the agency’s mandate aggressively as its first director, which often made him a target for the banking industry’s Washington lobbyists and Republicans in Congress who believed Cordray was overreaching in his role, calling the CFPB a “rogue agency”. He also was able to extract billions of dollars in settlements from banks, debt collectors and other companies for wrongdoing. When Wells Fargo was found to have opened millions of phony accounts for its customers, the CFPB fined the bank $185m, the agency’s largest penalty to date.
As director, he also was able to extract billions of dollars in settlements from banks, debt collectors and other financial services companies for wrongdoing. When Wells Fargo was found to have opened millions of phony accounts for its customers, the CFPB fined the bank $185m, the agency’s largest penalty to date.