Dispute over CFPB leadership fizzles out

by Francis Monfort10 Jul 2018

Consumer Financial Protection Bureau Deputy Director Leandra English is planning to step down from her role, in effect dropping her claim to the agency’s leadership, according to a Bloomberg report.=

English was appointed deputy director by then CFPB Director Richard Cordray in an attempt to put her in charge. Cordray left the agency to run for governor of Ohio as a Democrat.

However, President Donald Trump appointed Mick Mulvaney as the CFPB’s acting director. Mulvaney is also director of the White House’s Office of Management and Budget. The administration argued that it had legal authority to name a temporary director.

English sued the administration in November, challenging Trump’s appointment of Mulvaney to the role. For months, Democratic lawmakers have claimed that English is the rightful leader of the CFPB.

Now that Trump has announced his decision to nominate Kathy Kraninger as permanent leader of the agency, English has decided to resign. Like Mulvaney, Kraninger is an administration budget official.

Last year, the Trump administration’s selection of Mulvaney for the role was upheld by a federal court. English later appealed that ruling. She now plans to file court papers to bring the case to a close, according to her lawyer.

 

Related stories:
Federal judge rules CFPB structure is unconstitutional
Mulvaney: CFPB link to Warren needs to break

 

COMMENTS

Poll

Should CFPB have more supervision over credit agencies?