President Donald Trump said he is naming White House budget director Mick Mulvaney to be the temporary head of the Consumer Financial Protection Bureau, setting up what could be a high-stakes clash over the regulator’s leadership.
Mulvaney’s appointment came just after outgoing CFPB Director Richard Cordray had already tapped his deputy to run the agency on an acting basis, a move that was widely seen as an attempt to prevent the White House from defanging the watchdog.
With two officials appointed to the same post, it’s unclear who will ultimately take the reins at the controversial consumer regulator. Republicans are eager to start remaking the CFPB, which they blame for burdening banks with unnecessary rules. But Cordray and other Democrats are desperate to keep it out of the administration’s grip as long as they can.
Cordray, who was appointed by former President Barack Obama, officially stepped down Nov. 24. As he walked out the door Friday, Cordray announced that his current chief of staff, Leandra English, would become deputy directory and automatically rise to acting director once he left.
"The President looks forward to seeing Director Mulvaney take a common sense approach to leading the CFPBs dedicated staff, an approach that will empower consumers to make their own financial decisions and facilitate investment in our communities," The White House said in a statement. "Director Mulvaney will serve as Acting Director until a permanent director is nominated and confirmed."
‘Worst Entity’
If the Trump administration prevails and Mulvaney gets the job, he could begin overhauling an agency that he’s called “the very worst kind of government entity.”
Some lawyers argue that the CFPB’s deputy director takes over when the director leaves. But others say that laws governing federal vacancies should take precedent, which would allow Trump to install Mulvaney an interim basis. Since Cordray announced he planned to resign on Nov. 15, the White House has been clear that it would name someone to serve on an acting basis while it sough a permanent nominee.
The CFPB was established in the wake of the financial crisis to police credit cards, auto loans and other consumer finance products. Democrats, led by relentless Wall Street critic Elizabeth Warren, have praised the agency for returning billions of dollars to harmed consumers. Republicans call it a "rogue" agency with a leader that wields too much power that goes unchecked.