Trump  Dems in row over who is running the CFPB
But  the Trump administration  says that the president has the right to name the acting director.  Accordingly  Trump  appointed  his  budget chief  Mick Mulvaney to the post.
On Saturday   Trump  tweeted that the CFPB - which has imposed steep penalties on banks  auto dealers  student lenders and credit card companies for predatory lending practices - had âdevastatedâ financial institutions. Democrats and Republicans agree that  Trump  may nominate a permanent CFPB chief  but they disagree over who may lead the agency in the interim   a dispute which could drag on for months until the Senate confirms a permanent Trump appointment .  The dispute  is over which federal law prevails in naming an interim director. According to Democrats  the relevant law is the 2010 Dodd-Frank Wall Street reform law that created the CFPB  which stipulates that the agencyâs deputy director is to take over in the short term. Cordray  in announcing his resignation on Friday  said he had named English as deputy director and that she would become the acting director. But administration officials say the 1998 Federal Vacancies Reform Act gives the president the power to temporarily fill agency positions  except for those with multi-member boards - an exemption they said did not apply to the CFPB.
Part of the confusion stems from the status of the CFPB as an independent government agency. There are several court challenges underway to that designation  which should give  Trump  the power to name an interim replacement.
On Saturday evening  the Justice Department said in a memo that the White House was right to name a new CFPB director. The Dodd-Frank language about changing CFPB directors is âunusualâ but the White House may name an interim chief  according to the memo. Such advice from the Justice Department is open to legal challenge. Alan Kaplinsky  head of the Consumer Financial Services Group for law firm Ballard Spahr LLP  said the issue will likely have to be decided in the courts. In the meantime  he said  âThis enormous cloud of uncertaintyâ will hang over the CFPB. Kaplinsky said he believes that Dodd-Frank provides for the deputy director to take charge during the short-term  but Congress did not explicitly list the resignation of the director as a situation where the deputy would step up. âI think  Trump  wins  but unfortunately it is going to take a while â Kaplinsky said.
But  the Trump administration  says that the president has the right to name the acting director.  Accordingly   [TGT] appointed  his  budget chief  Mick Mulvaney to the post.
On Saturday    [TGT]   tweeted that the CFPB - which has imposed steep penalties on banks  auto dealers  student lenders and credit card companies for predatory lending practices - had âdevastatedâ financial institutions. Democrats and Republicans agree that   [TGT] may nominate a permanent CFPB chief  but they disagree over who may lead the agency in  [TGT]  .   [TGT] is over which federal law prevails in naming an interim director. According to Democrats  the relevant law is the 2010 Dodd-Frank Wall Street reform law that created the CFPB  which stipulates that the agencyâs deputy director is to take over in the short term. Cordray  in announcing his resignation on Friday  said he had named English as deputy director and that she would become the acting director. But administration officials say the 1998 Federal Vacancies Reform Act gives the president the power to temporarily fill agency positions  except for those with multi-member boards - an exemption they said did not apply to the CFPB.
Part of the confusion stems from the status of the CFPB as an independent government agency. There are several court challenges underway to that designation  which should give  Trump  the power to name an interim replacement.
On Saturday evening  the Justice Department said in a memo that the White House was right to name a new CFPB director. The Dodd-Frank language about changing CFPB directors is âunusualâ but the White House may name an interim chief  according to the memo. Such advice from the Justice Department is open to legal challenge. Alan Kaplinsky  head of the Consumer Financial Services Group for law firm Ballard Spahr LLP  said the issue will likely have to be decided in the courts. In the meantime  he said  âThis enormous cloud of uncertaintyâ will hang over the CFPB. Kaplinsky said he believes that Dodd-Frank provides for the deputy director to take charge during the short-term  but Congress did not explicitly list the resignation of the director as a situation where the deputy would step up. âI think  Trump  wins  but unfortunately it is going to take a while â Kaplinsky said.