WHO’S THE BOSS?
The leadership of the Consumer Financial Protection Bureau is in dispute, following the resignation of Richard Cordray on Friday. Dodd Frank Update will provide this running blog to bring you the latest updates in activity going on with the CFPB and its leadership.
2:40 p.m. Friday Mulvaney hired Brian Johnson, a top aide for House Financial Services Committee Chairman Jeb Hensarling (R-Texas), Thursday to be his assistant.
2:30 p.m. Friday English sent an email to staffers last night regarding enforcement actions in the pipeline, advising them “to be sure that these are still on track,” which she signed “Leandra English, Acting Director,” Reuters reported. Her attorney, Deepak Gupta said in a statement, “She is doing the work of the bureau and looking out for its mission.”
9:45 a.m. Thursday Last night the CFPB posted its first notice since Cordray left office, a blog posting on being money smart by policy analyst Janice Mitchell.
9:43 a.m. Thursday Mulvaney is scheduled to work at the CFPB today before returning to his OMB office on Friday
9:41 a.m. Thursday Deputy Assistant Attorney General Brett Shumate filed a notice of appearance with the D.C. district court yesterday and will be the lead attorney for the government in the English v. Trump case. Both parties are facing a deadline today to present a joint proposed briefing schedule to Judge Kelly.
10:18 a.m. Wednesday Mulvaney is scheduled to work at OMB office today rather than CFPB. No word yet on whether English will be at CFPB offices. Published reports say Gupta told reporters after the hearing Tuesday that English might seek an appeal, a preliminary injunction, or an expedited final decision.
10:13 a.m. Wednesday English's attorney Gupta confirms that Twitter account claiming to be her as DirectorCFPB is fake.
10:07 a.m. Wednesday Judge Kelly denies request to treat temporary restraining order as motion for preliminary injunction but gives sides until Friday to submit schedules for a briefing on the merits of the case or a preliminary injunction "should one be filed by plaintiff by then"
10:30 p.m. Tuesday President Trump tweets celebrating victory in court "Just won the lawsuit on leadership of Consumer Financial Protection Bureau, CFPB. A big win for the Consumer!"
7 p.m. Tuesday Pelosi tweets continued support for English "Incredibly thankful for the determination of Leandra English, the rightful Acting Director of CFPB"
5:20 p.m. Tuesday Judge Kelly denies English motion for temporary restraining order. Mulvaney will be acting director of CFPB pending case.
3:06 p.m. Tuesday A person claiming to be English tweets from the DirectorCFPB Twitter account "I hear that @MickMulvaneyOMB is claiming to be leading CFPB, on Twitter. Fake News. #Sad"
2:55 p.m. Tuesday Rep. Brian Babin (R-Texas) tweets support for Mulvaney "I fully support (the president's) lawful designation of Mick Mulvaney as acting director of the Consumer Financial Protection Bureau."
2:50 p.m. Tuesday The states of Texas, West Virginia, Alabama, Arkansas, Georgia, Louisiana, Oklahoma, and South Carolina have filed an amici brief in support of Mulvaney in English's lawsuit.
1:35 p.m. Tuesday Mulvaney tweets from the CFPBDirector Twitter account a picture of him at the director's desk "Busy day at the CFPB. Digging into the details."
12:16 p.m. Tuesday Protestors gather outside the front door of the CFPB office to call for Mulvaney to step aside. Sens. Merkley and Warren are slated to speak at the rally.
11:37 a.m. Tuesday Much like Monday, Mulvaney has responded to English's announcement that she is acting director with an email to staff of his own: ""I understand that Ms. English sent out at least one additional email today wherein she purports to be the Acting Director. Consistent with my email from yesterday, please disregard any emails sent by, or instructions you receive from, Ms. English when she is purporting to act as the Acting Director. I apologize for having to send this instruction again. And I feel terrible about you folks being put in this position, as I understand it can be both confusing and disruptive. However, I hope we won’t have any more misunderstandings moving forward. Please feel free to reach out to me here or in person if you have any questions. Thanks very much. Mick M. Acting Director"
11:32 a.m. Tuesday Judge Kelly orders a motion hearing for 4 p.m. this afternoon on English's temporary restraining order.
9:55 a.m. Tuesday Rep. Carolyn Maloney (D-N.Y.), one of those in amici brief, tweets her support for English "The CFPB fights for consumers every day. We can’t allow the Trump Administration to dismantle it from within."
9:52 a.m. Tuesday English issued a statement that she is on the job today. "Yesterday, I spent time at the CFPB, I reviewed transition materials, and I met with Members of Congress to lay out my plans for ensuring that the consumer bureau continues to fight for working families. Today, I plan on spending the day at CFPB headquarters taking calls and meetings with external stakeholders and bureau staff."
7:47 a.m. Tuesday Mulvaney filed a reply brief with the D.C. district court late Monday night. The 19-page brief, which was requested by Judge Kelly before ruling on the temporary restraining order requested by English, could mean a ruling on the restraining order comes today or tomorrow.
5:53 p.m. Monday 26 current and former Democratic members of Congress, including Dodd-Frank author Barney Frank, House Minority Leader Nancy Pelosi and Senate Minority Leader Chuck Schumer, file amici curiae in support of English's lawsuit.
5:37 p.m. Monday Elizabeth Warren on Bloomberg TV interview says there is an acting director at CFPB "It's the one that Congress designated in the statute itself. ... Nobody needs to appoint her. Nobody needs to do anything."
5:30 p.m. Monday English's attorney, former CFPB counsel Deepak Gupta, said outside the court after the hearing "I do think that it’s disturbing that the Justice Department’s lawyers were unwilling to provide the court with any assurances that Miss English will not be removed, and I think that highlights the need for a quick resolution."
5:17 p.m. Monday Buzzfeed News court reporter announces via Twitter that no immediate ruling was made on temporary restraining order hearing, which has just concluded.
4:54 p.m. Monday Mulvaney announces at press conference that he told CFPB staff changes will happen "immediately." "Anybody who thinks that a Trump administration CFPB will be the same as an Obama administration CFPB is simply being naïve. Elections have consequences at every agency and that includes the CFPB."
4:34 p.m. Monday Mulvaney announces a 30-day hiring freeze and 30-day halt to all rules, regulation and guidance. In addition, there is a 30-day freeze to any distributions from the approximately $50 million in the Civil Penalty Fund
4:05 p.m. Monday With no changes cited by the D.C. district court, it appears the hearing on the temporary restraining order will be conducted at 4:30 p.m. today.
4:00 p.m. Monday Sanders asked why the president doesn't fire English. "She’s still the deputy director and has a legal standing in that capacity but not as the director.
3:58 p.m. Monday More from Sanders' press conference. "Director Mulvaney has taken charge of that agency and he has the full cooperation of the staff and appeared there this morning. It went very well on his first day at the CFPB."
3:35 p.m. Monday Press Secretary Sarah Sanders' press conference dominated by questions about CFPB and Mulvaney. Sanders says the law is "extremely clear" that Mulvaney is the acting director, and that the CFPB will be much better than it has been in the past. "We're not going to put political ambitions as the No. 1 priority" of the CFPB, Sanders says.
2:50 p.m. Monday Sen. Mike Lee (R-Utah) released a statement on the transition saying, "The duly elected President of the United States has chosen Mick Mulvaney to be the acting director of the CFPB and anyone else who claims they have that title is acting illegally."
2:28 Monday English's case has been assigned to Judge Timothy J Kelly with a hearing set for the temporary restraining order at 4:30 p.m. today
2:17 p.m. Monday House Financial Services Ranking Member Maxine Waters (D-Calif.) issued a statement on Mulvaney's appointment: “Richard Cordray appointed Leandra English as Deputy Director of the Consumer Bureau to ensure a smooth transition and operational stability at the agency. Ms. English should be allowed to serve as Acting Director until a Director is confirmed by the full Senate, consistent with the process articulated in the law that created the Consumer Bureau. Mick Mulvaney is an unacceptable candidate to lead the Consumer Bureau. As a member of the House Financial Services Committee, Mr. Mulvaney called the Consumer Bureau a ‘joke.’ He was also the original cosponsor of a bill to completely eliminate the Consumer Bureau, and supported other legislation to harmfully roll back Wall Street reform. He has not only expressed noxious views about the important work that the Consumer Bureau does to protect hardworking Americans, he has also worked to destroy it. It is clear that he would do the same if he were to serve as Acting Director. By attempting to install Mr. Mulvaney in this post, Trump is once again trying to circumvent Congress to rush allies of Wall Street into key positions to put their priorities first, at the expense of American consumers. In addition to the deep problems posed by Mr. Mulvaney’s clear hostility to consumer protection, it is inappropriate for Trump’s sitting Director of the Office of Management and Budget to simultaneously lead the Consumer Bureau, which is an independent agency. The Consumer Bureau’s Director also sits on the Board of the Federal Deposit Insurance Corporation and the Financial Stability Oversight Council, meaning that the White House would have an alarming degree of direct control over financial regulation, supervision, and enforcement. The Consumer Bureau has returned $12 billion to nearly 30 million consumers who have been harmed by financial institutions, handled over 1.3 million consumer complaint about financial institutions, and made the financial marketplace fairer for all Americans. Its important work must not be undermined.”
1:30 p.m. Monday Mulvaney aide tells Axios the transition could not have gone smoother and that he had not seen English.
1:10 p.m. Monday Sen. Tom Cotton (R-Ark.) said in a statement regarding Leandra English’s contention that she is the rightful successor to Richard Cordray as head of the CFPB, “The Consumer Financial Protection Bureau is a rogue, unconstitutional agency. Leandra English’s lawsuit to install herself as acting director against the president's explicit direction is just the latest lawless action by the CFPB. She doesn't have a legal leg to stand on, as her own general counsel has conceded and the Department of Justice has concluded. The president should fire her immediately and anyone who disobeys Director Mulvaney's orders should also be fired summarily. The Constitution and the law must prevail against the supposed resistance.”
12:50 p.m. Monday Sen. Elizabeth Warren (D-Mass.) said she plans to meet with Leandra English today. English’s lawsuit claims that the role of acting CFPB director is hers, according to Dodd-Frank. The CFPB’s general counsel has said her opinion is that President Trump has the right to fill the role, as he has done by appointing Mick Mulvaney.
12:50 p.m. Monday Mick Mulvaney’s spokesperson John Czwartacki said that when Mulvaney arrived at the CFPB, he was greeted at the front door by a member of the senior leadership team, and that “it could not have been a smoother transition.” In reference to Leandra English, Mulvaney reportedly said, “I’ve not seen her. I’ve not seen anyone act as her proxy. I’ve only had cordial interactions with the staff so far.”
10:10 a.m. Monday Dodd-Frank Act author Barney Frank, in an interview with CNN: "When we wrote the law creating the CFPB, we deliberately tried to give it some protection from the normal process. We knew that the vacancy law said, in other words, the vacancy law was already on the books, the one (Trump) is claiming. We, knowing that was on the books, wrote a different law later. Ordinarily, the later law that is more specifically tailored to the particular situation that covers it. … Here's the key point here. We gave a five-year term, removable by the president only for cause. So, the reason we added this piece is this, if you want to have a five-year term, you want to say, well, what happens to the guy who gets hit by a car? You don't want the autonomy to end. So, the purpose of this statute was so that the five-year term continues for five years, even if there was a problem with the head of the agency physically or in any other way."
10 a.m. Monday Mulvaney holds meeting with CFPB senior staff. Picture tweeted by OMB communications shows Supervision, Enforcement and Fair Lending Associate Director Christopher D'Angelo, Consumer Education and Engagement Associate Director Gail Hillebrand and four other staffers.
10 a.m. Monday Mulvaney emails CFPB staff “Please disregard any instructions you receive from Ms. English in her presumed capacity as Acting Director. If you receive additional communications from her today in any form, related in any way to the function of her actual or presumed official duties (i.e. not personal), please inform the general counsel. I apologize for this being the very first thing you hear from me. However, under the circumstances I suppose it is necessary. I look forward to working with all of you. If you’re at 1700 G Street today, please stop by the 4th floor to say hello and grab a donut.”
7:57 a.m. Monday English sends CFPB staff an email “I hope that everyone had a great Thanksgiving. With Thanksgiving in mind, I wanted to take a moment to share my gratitude to all of you for your service. It is an honor to work with all of you. Best, Leandra English Acting Director”
7:56 a.m. Monday OMB communications staff tweets photo of Mulvaney at director’s desk reviewing a transition manual
7:50 a.m. Monday Mulvaney, carrying a box of Dunkin’ Donuts, enters the CFPB offices
Later Sunday night CFPB Acting Director Leandra English files suit in the D.C. District Court, requesting an emergency hearing and a temporary restraining order against Mulvaney’s appointment.
Sunday night Senate Minority Leader Chuck Schumer tweeted: “The process for succession laid out in Dodd Frank is clear: Leandra English, not Mick Mulvaney, is the acting dir of CFPB. By attempting to install Mr. Mulvaney as director, the Trump admin is ignoring the established, legal order of succession that we purposefully put in place."
Sunday night Press Secretary Sarah Sanders says the matter of leadership is settled. “Now that the CFPB’s own general counsel — who was hired under Richard Cordray — has notified the bureau’s leadership that she agrees with the administration’s and DOJ’s reading of the law, there should be no question that Director Mulvaney is the acting director. It is unfortunate that Mr. Cordray decided to put his political ambition above the interests of consumers with this stunt.”
Saturday afternoon President Trump tweeted: “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! … Check out the recent Editorial in the Wall Street Journal about what a complete disaster the CFPB has been under its leader from previous Administration, who just quit!”
Later Saturday In a memo to the senior leadership at the CFPB, bureau General Counsel Mary McLeod said it was her legal opinion “that the president possesses the authority to designate an acting director for the bureau under the FVRA (Federal Vacancies Reform Act), notwithstanding” the Dodd-Frank Act.
Saturday Assistant Attorney General Steven Engel writes a memo to the president which says “the president may designate an acting director of the CFPB … because both the Vacancies Reform Act and the office-specific statute are available to fill a vacancy in that office on an acting basis.”
Friday, 8:50 p.m. President Donald Trump announces that Office of Management and Budget Director Mick Mulvaney is named acting director of the CFPB.
Friday, 2:30 p.m. Richard Cordray announces that Leandra English has been appointed deputy director, with the intent of replacing him when Cordray’s resignation becomes official at midnight.