Crisis at the Consumer Financial Protection Bureau

U.S. Senator Elizabeth Warren (D-MA) (L) talks with U.S. Consumer Financial Protection Bureau Director Richard Cordray (R) after he testified about Wall Street reform before a Senate Banking Committee hearing on Capitol Hill in Washington September 9, 2014. REUTERS/Jonathan Ernst (UNITED STATES - Tags: POLITICS BUSINESS) - RTR45K65

Late on Friday, President Trump made an announcement that surprised many people. He said that the position of the Consumer Financial Protection Bureau director would be occupied by the current budget director. However, this happened despite the outgoing leader making a recommendation of his own and even installing him in his place. The New York Times has learned that at the end of the day, dueling directors had been appointed for the same position. At the same time, these are two directors who could not sit down and agree on a single thing. This threatened the existence of a financial agency that was created as a result of economic meltdown. During the last few years, the agency has faced threats to its existence after a number of Republicans have voted in favor of ending the agency. The outgoing director has been referred to as Richard Cordray, and he was appointed by Barrack Obama. A few days ago, he said that he would be leaving the institution earlier. This meant that he would not be able to complete his term which was expected to end early February next year. After making the announcement, he wrote a letter to his superiors recommending Leandra English as the person who would replace him. At the time of the appointment, Leandra English acted as his chief of staff.

He further read the law saying that whenever the director steps down, he should be replaced by the deputy director. Experts claim that the move was taken to ensure that the Trump administration does not appoint its new director. However, the new director will take months to occupy the position. It takes some few months before the confirmation can go through. The White House didn’t relent on its decision. They said that the budget director would occupy the position with immediate effect. This is a man who once talked about the bureau he was appointed to represent as a sad, sick joke. This new position would not prevent him from carrying out the responsibilities at the Office of Management and Budget as the head. He later issued a statement saying that it’s the wish of Americans to receive the representation of their choice especially on issues related to fair and free markets. The outgoing director used the Dodd-Frank Act of 2010 to make his case. The latest twist of events leaves supporters of the bureau worried about its future.


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