The Fight For CFPB: English Sues, Warren Hits Back, Mulvaney Buys Donuts

Something bizarre is unfolding on Monday at the CFPB, where Mick Mulvaney showed up for his first day of work as temporary head of the Bureau.

You’ll recall that last week, Rich Cordray resigned and immediately appointed the CFPB’s chief of staff, Leandra English, as the agency’s acting director. That was an effort to stop Donald Trump from effectively commandeering the agency, something Elizabeth Warren warned would lead to regulatory capture and possibly put the nation on the road to another financial crisis. We wrote about this as it unfolded in the following two posts:

• ‘Wall Street Will Run Amok’, Elizabeth Warren Warns Amid CFPB Standoff
• ‘Total Disaster’: Legal Standoff Looms As Trump, Warren Trade Insults Over CFPB

Trump and Republicans are eager to remake the entire Bureau, presumably in the image of something that will not stymie the banks and will be consistent with the administration’s push to roll back regulations. Mulvaney actually voted to kill the entire agency at once point and now he’s been installed to lead it, a hilariously absurd proposition for obvious reasons.

On Sunday, CFPB General Counsel Mary McLeod came to the conclusion that Trump does indeed have the authority to name the acting director. That decision is consistent with the DOJ’s opinion that the President can appoint Mulvaney to lead the agency. Still, the matter is far from “resolved” as evidenced by this hilarious memo English sent out this morning (note how it’s signed):

https://twitter.com/katierogers/status/935138571236925441

She’s now suing:

https://twitter.com/peteschroeder/status/934965719736909824

For his part, Mulvaney showed up with donuts and promptly instructed everyone to ignore “Ms. English”:

https://twitter.com/katierogers/status/935125394767917056

Excerpt from Mulvaney email to @CFPB staff, asking them to stand down on instructions from English: “I apologize for this being the very first thing you hear from me.” pic.twitter.com/BnzoJOn1v5

— Kayla Tausche (@kaylatausche) November 27, 2017

So you can see how this has the potential to devolve/escalate.

Warren gave an interview to the Washington Post today, noting that in Mulvaney, “the agency will be headed by someone who fundamentally doesn’t believe in its mission.” “This would change every calculation that every giant bank makes in the executive suite when deciding just how close to breaking the law they want to come,” Warren continued, adding that “if the cop is pulled off the beat, then the profits from cheating people look far more attractive to the banking executives.”

Exactly. And the ultimate irony is that Trump ran on a platform that promised to protect the interests of the working class. Say what you will about the CFPB, but there is no ambiguity with regard to what neutering it will mean in terms of imperiling Main Street vis-a-vis predatory practices.

Oh well, maybe Mick will send you some Dunkin’ the next time your 401k gets wiped out…