President Donald Trump is currently at war with Democrats over when he gets to install Budget Director Mick Mulvaney as the new temporary head of the Consumer Financial Protection Bureau.
“The process for succession laid out in Dodd Frank is clear: Leandra English, not Mick Mulvaney, is the acting director of the CFPB,” wrote Senate Minority Leader Chuck Schumer. “By attempting to install Mr. Mulvaney as director, the Trump administration is ignoring the established, proper, legal order of succession that we purposefully put in place, in order to put a fox in charge of the hen house.”
The previous CFPB director, Richard Cordray, announced his resignation last week in advance of what political watchers anticipated would be a bid for Ohio’s governorship in 2018. Under the Dodd-Frank Act, Cordray was given the right to appoint his own temporary successor, Democrats and Corday argued. Corday tapped Leandra English to fill his shoes after leaving the office. On Friday, however, Trump surprised politics watchers by instead designating his own budget chief, Mick Mulvaney, to take over the agency in Cordray’s stead.
As Reuters reporter Pete Schroeder pointed out on Twitter, there are also concerns that Mulvaney would have too much power because of his multiple portfolios that cause him to report directly to the president.
Part of the controversy over Trump’s appointment of Mulvaney is that the former South Carolina congressman had previously described the agency as “a wonderful example of how a bureaucracy will function if it has no accountability to anybody.” He also referred to the bureau as “sick” and a “sad” joke.
Trump defended his decision to appoint Mulvaney on Friday — despite outgoing CFPB head Richard Cordray appointing Leandra English as his temporary successor in clear accord with the law — with a pair of Saturday tweets.
The Consumer Financial Protection Bureau, or CFPB, has been a total disaster as run by the previous Administrations pick. Financial Institutions have been devastated and unable to properly serve the public. We will bring it back to life!
— Donald J. Trump (@realDonaldTrump) November 25, 2017
Check out the recent Editorial in the Wall Street Journal @WSJ about what a complete disaster the @CFPB has been under its leader from previous Administration, who just quit!
— Donald J. Trump (@realDonaldTrump) November 25, 2017
Trump’s decision is being supported by the Justice Department, whose general counsel Mary McLeod produced a memo on Sunday concluding that Trump had the authority as president to appoint the CFPB’s new head. By contrast, Sen. Elizabeth Warren, D-Mass., has denounced Trump’s decision. Warren helped create the consumer protection agency and is widely considered to be a major contender for the Democratic presidential nomination in 2020.
The Dodd-Frank Act is clear: if there is a @CFPB Director vacancy, the Deputy Director becomes Acting Director. @realDonaldTrump can’t override that. pic.twitter.com/r949ccaJAb
— Elizabeth Warren (@SenWarren) November 25, 2017
.@realDonaldTrump can nominate the next @CFPB Director – but until that nominee is confirmed by the Senate, Leandra English is the Acting Director under the Dodd-Frank Act.
— Elizabeth Warren (@SenWarren) November 25, 2017
Bank lawyer Alan Kaplinsky & I often disagree. But we agree that there is an "enormous cloud of uncertainty" over @realDonaldTrump naming Mulvaney acting @CFPB Director. https://t.co/uPiDuRdgtl
— Elizabeth Warren (@SenWarren) November 25, 2017
By ignoring Dodd-Frank & naming his own acting @CFPB Director, @realDonaldTrump is causing chaos & market uncertainty. So I agree with Rich Cordray: this needs to be decided in the courts.
— Elizabeth Warren (@SenWarren) November 25, 2017
If @realDonaldTrump believes he is acting legally by ignoring Dodd-Frank, he should go to court & seek a judgment right away to settle this @CFPB dispute.
— Elizabeth Warren (@SenWarren) November 25, 2017
Less than a decade after taxpayers bailed out the big banks, the banking industry made record profits last year. That's who you're worried about, @realDonaldTrump? https://t.co/O318bHhZbS
— Elizabeth Warren (@SenWarren) November 25, 2017
The @CFPB has returned $12 billion to working families who were cheated. That’s government that works for the people, @realDonaldTrump.
— Elizabeth Warren (@SenWarren) November 25, 2017
The only thing that will turn the @CFPB into a disaster is for @realDonaldTrump to ignore Dodd-Frank & name an acting director determined to destroy the agency.
— Elizabeth Warren (@SenWarren) November 25, 2017
Trump has put a cloud of uncertainty over the @CFPB by attempting to override Dodd-Frank. Mulvaney should take no action until this dispute is decided in the courts. https://t.co/BBBCA6fRYs
— Elizabeth Warren (@SenWarren) November 27, 2017
English has a reputation for being a professional who tries to avoid getting involved in political fights, one that earned her high praise from outgoing head Cordray when he named her as his temporary successor.
“Leandra is a seasoned professional who has spent her career of public service focused on promoting smooth and efficient operations. As deputy director, we will continue to benefit from Leandra’s in-depth knowledge of the operational needs of this agency and its staff,” Cordray wrote.
