Consumer Financial Protection Bureau (CFPB) Director Richard Cordray has finally spoken in the wake of President Trump’s inauguration, per the LA Times.
And he’s not pulling any punches.
“The new administration really shouldn’t change the job at all,” said Cordray at a forum held by the Wall Street Journal.
“We’re expected to work with different administrations of different points of view. We have … an independent mandate to do what we do and we will continue working to protect consumers.”
Cordray has said in the past that he has no intention of stepping down. His term ends in 2018.
As Daily Business News readers are aware, the Trump Administration has sent clear signals that Dodd-Frank is in the crosshairs for parts of the legislation to be rolled back, or repealed.
After the election, Republican Senators Bob Sasse (Neb.) and Mike Lee (Utah) penned a strongly worded letter to then Vice President-elect Mike Pence, urging then President-elect Donald Trump to remove Cordray.
“It’s time to fire King Richard,” said Sasse.
“Underneath the CFPB’s Orwellian acronym is an attack on the American idea that the people who write our laws are accountable to the American people. President-elect Trump has the authority to remove Mr. Cordray and that’s exactly what the American people deserve.”
The Daily Business News has also followed the CFPB saga closely, including their involvement in the Wells Fargo case and a D.C. circuit court ruling that deemed the organization unconstitutional due to it’s lack of independent oversight.
Senator Mike Lee touched on the importance of the unconstitutional ruling.
“The Constitution was written to protect the American people from unelected and unaccountable bureaucrats,” said Lee.
“Considering the damage CFPB has done to credit unions and community banks, President Trump should act quickly to remove the director.“
Within a week of the letter from Sasse and Lee, Democrats came to Cordray’s defense.
“Do not tell Richard Cordray he’s fired,” said Senator Chuck Schumer (NY).
“Firing Cordray might be part of the billionaire agenda, but removing him and gutting the consumer bureau would shatter Trump’s promise,” said Senator Sherrod Brown (OH), who is the ranking Democrat on the Senate Banking Committee.
Senators Schumer and Brown have now been joined by Rep. Maxine Waters (D-Los Angeles) and 37 other members of the Congressional Black Caucus in the effort stop action on Cordray.
In a letter to President Trump on Tuesday, they wrote that they “would strongly oppose” any attempt to remove Cordray and “would view such an action as an illegitimate abuse of power.”
“Director Cordray has done nothing to give the necessary cause for his removal from office,” wrote the lawmakers.
“Communities of color and, indeed, all consumers in America will benefit from having director Cordray remain in his position and continue to independently implement the mandates imposed upon him by Congress as the director of the CFPB.“
While the CFPB is credited with taking actions to protect consumers, most notably in the Wells Fargo case, those who have followed the history of the CFPB understand that the CFPB was not the lead agency in the case and during the time the events took place in 2011, the CFPB charter basically only allowed it to police the activity of big banks.
It did not catch the Wells Fargo activity at that time.
Cordray also commented about whether he would fight an attempt by Trump to fire him.
“I was nominated and then confirmed by the Senate to serve a term,” said Cordray.
“All the independent federal regulatory agencies have terms that overlap one administration or another. That’s meant to preserve their independence.”
“That’s important because without the independence you end up mired in partisan politics, the big-money special interests … will try to dictate results.”
For a deep dive into the CFPB, Dodd-Frank and their adverse effects on the manufactured housing industry, click here. ##
(Image credits are as shown above.)
RC Williams, for Daily Business News, MHProNews.