As you probably know by now, Richard Cordray resigned as the inaugural Director of the Consumer Financial Protection Bureau (CFPB). With that, President Trump wasted little time in appointing his White House Budget Director, Mick Mulvaney, to replace Mr. Cordray.
“Not so fast,” says Leandra English. Who? She was Director Cordray’s Chief of Staff.
When Cordray decided to resign, he appointed her as Deputy Director, putting her in line to assume the Director’s position when he left. Smooth move, eh?
Trump says he has the right to appoint a new Director. The Dems say…no! It will be up to the courts to decide. In the interim, who’s in charge and how will it affect lenders and enforcement actions?
This is what happens when political parties in power try to circumvent the process. The CFPB was created in the wake of the financial crisis of 2008.
CFPB and Dodd-Frank were jammed down the throats of the financial industry. The Democrats created an agency that is not accountable to Congress and basically under the control of a Czar like Director. Not a good plan in a Democracy.
It’s now time to replace the Czar, but the sides disagree on how. In the balance, lies the protection of consumers and the regulation of the financial community. Neither of which should be taken lightly.
Maybe, it’s about time for our elected officials to serve the needs of those who they were elected to represent; the people. Do what is right for a change and not what is in the best interest of the party.
I’m no politician. But, I know it is not in anyone’s best interest to have one, single person in charge of any agency.
It may be good for one party while they are in power and hold the strings to that person. But, what happens when the tides change? The new party puts someone in to do their bidding.
Regardless of which party you prefer, the outcome is not good for the people or the industry regulated. We need some stability in these regulatory agencies so we have stability in the markets they regulate. Uncertainty is not good for anyone.
With Cordray’s resignation, Congress has the opportunity to do the right thing. Create an agency that is governed by a committee with a Director, accountable to Congress, appointed by the President. And, a commission, with adequate representation from both sides of the aisle, appointed and approved by Congress.
That’s my two cents, what yours?