Future of CFPB director in question with change of administration

Richard Cordray, the head of the Consumer Financial Protection Bureau, faces a barrage of criticism as Republican President-elect Donald Trump prepares to take office and is predicted to change the structure of the organization that was established in the wake of the 2010 Dodd-Frank Act. A recent article in The Wall Street Journal says Cordray […]

Richard Cordray, the head of the Consumer Financial Protection Bureau, faces a barrage of criticism as Republican President-elect Donald Trump prepares to take office and is predicted to change the structure of the organization that was established in the wake of the 2010 Dodd-Frank Act.

A recent article in The Wall Street Journal says Cordray is “disliked by many GOP lawmakers and financial-industry players for helping build the five-year-old agency into an aggressive financial regulator.”

The 2010 Dodd-Frank law states that the president may only remove its director for “inefficiency, neglect of duty, or malfeasance in office.”

Also to be considered is a court case on the constitutionality of the bureau’s single-director structure, saying it makes sense to wait for resolution of that case, which is now before the U.S. Court of Appeals for the D.C. Circuit. The CFPB has challenged an October decision by a panel of judges at the court who ruled the agency’s structure unconstitutional and granted the president the power to fire the director at will.

In a case involving a New Jersey mortgage lender challenging a $109 million fine levied by the bureau, a three-judge panel ruled that the agency’s structure is unconstitutional because the director has wide-ranging power with little oversight. Read more at NASDAQ:

Written by
admin
View all articles

About Us

The League of Southeastern Credit Unions & Affiliates represents 342 credit unions in Alabama, Florida and Georgia, with a combined total of $118.63 billion in assets and more than 10.1 million members. LSCU & Affiliates provides legislative and regulatory advocacy; education and training; cooperative initiatives (including financial education outreach); public messaging; information services; and business solutions.

LSCU Mission Statement

To create an environment that enables credit unions to grow and succeed.

LSCU Vision Statement

To be the trusted advocate and preferred source of information for credit unions.

If you need to reach us, e-mail communications@lscu.coop

Social Channels

Follow us on all major social media platforms.