Deputy Director Of Consumer Agency Filed Lawsuit To Keep Her Job

Nov 28, 2017, 00:50
Deputy Director Of Consumer Agency Filed Lawsuit To Keep Her Job

Around the same time, Leandra English, the agency's other acting director, sent an all-staff email thanking employees for their service.

Mulvaney has in the past called the bureau "a sick, sad joke" that shouldn't exist. In the OLC's opinion, the FVRA provision can be used by the President to override the provision in the Consumer Financial Protection Act (CFPA) that provides that the Deputy Director "shall serve as Acting Director in the absence or unavailability of the Director". Cordray was appointed to the position by President Barack Obama and has been long criticized by congressional Republicans for being overzealous but lauded by consumer advocates for aggressively going after banks for wrongdoing, like in the case of Wells Fargo.

English was promoted from chief of staff to deputy director by Richard Cordray as he prepared to resign last Friday.

The White House cites the Federal Vacancies Reform Act of 1998.

Founded in the wake of the 2008 financial crisis, CFPB was authorized as part of the Dodd-Frank Act to protect consumers and monitor Wall Street. Currently, the agency effectively has two acting directors.

Asked by reporters want Trump wants him to accomplish, Mulvaney said the president wants him to "fix it". But President Trump tapped Mick Mulvaney, Office of Management and Budget director, to serve as interim director over the watchdog agency - an action that spurred English to file a lawsuit against the president and Mulvaney on Sunday. CFPB also has broad regulatory authority over financial institutions with assets over $10 billion. "We will bring it back to life!" They view Mulvaney's appointment as something that the Justice Department, consumer agency lawyers and staff agree upon and expect a normal transition, the source said. They spoke on condition of anonymity to discuss the White House's thinking. "The president's purported or intended appointment of defendant Mulvaney as acting director of the CFPB is unlawful". The White House responded forcefully by saying Mulvaney, now director of the Office of Management and Budget, would be the one in control until Trump decided on a permanent successor, whose confirmation could take months.

"To ensure the Bureau's independence, Congress specified that the Director would not serve at the pleasure of the President and could instead be removed only for cause", the lawsuit adds.

The clashing appointments raise the question: What happens when the two new heads show up and try to sit at the same desk and give orders?

White House press secretary Sarah Huckabee Sanders said at Monday's briefing that Mulvaney has "taken charge" of the bureau and has the "full cooperation" of the staff.

As the fight plays out in court, it's a good moment to go over the agency's history, what it does, and its impact on American consumers. English, formerly the agency's chief of staff, believes she should be in charge of the agency.

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

Before the Consumer Financial Protection Bureau was established, there were seven different federal agencies tasked with overseeing financial consumer issues. The decision followed Cordray's abrupt resignation announcement that same day (the outgoing director had eight months left in his tenure at the time of his departure).