Last week, we spotlighted the resignation of Consumer Financial Protection Bureau (CFPB) head, Richard Cordray. His departure left a mark of uncertainty over the fate of the institution – one of the financial industry’s top regulators.
Who’s the Boss?
This week sparked contention over who would be taking the helm following Cordray’s departure. Although Cordray had named his deputy director as acting head while a replacement was sought, it seems the White House already had a replacement in mind. Nick Mulvaney, who until recently served as director of the White House Office of Management and Budget, has been appointed as the CFPB replacement pick.
In addition to spreading further uncertainty and confusion over the organization’s fate, the move caused a stir in Washington among those wanting to protect the bureau and those who want to see it scaled-back. Supporters of the CFPB fear that Mulvaney, a known critic of the organization, would seek a drastic overhaul of its authority and oversight.
A lawsuit has been filed to determine who has rightful claim as CFPB replacement.
ISO: CFPB Replacement
While the legal battle ensues, questions remain. If you’ve been following the recent events, you know that even if question of acting director is settled, a permanent replacement pick must be found. Whomever the final candidate may be, they require senator confirmation – and that’s sure to be a process in itself. With the CFPB such a contentious topic among lawmakers, there’s going to be some impassioned arguments on both sides of the issue.
What it Means for Consumers
You may be wondering how all this fighting on Capitol Hill affects you. Well, the CFPB has its hand in a number of factors that affect you, as a consumer directly. The CFPB provides education and resources for consumers to make the relationship between you and the financial industry more transparent and accessible. It also provides regulatory oversight, protecting you from deceitful and predatory practices.