WASHINGTON–Employees at the Consumer Financial Protection Bureau this morning are now facing day two of “Who’s the Boss?”
Both Leandra English and Mick Mulvaney sent emails to staff yesterday signed “Acting Director” as the CFPB remains in flux over who is authorized to lead the agency. As CUToday.info reported here, English has laid claim to the top job after being named deputy director by Richard Cordray prior to his resignation, and then became acting director when Cordray resigned. Mulvaney is claiming the top job is his after being named acting director by President Trump. English has filed suit in U.S. District Court for the District of Columbia to stop Mulvaney’s appointment. The case is being heard by Judge Timothy Kelly, who was appointed by Trump to the position in September.
Confounding matters even more: both English and Mulvaney—who is also the Director of the U.S. Office of Management and Budget—showed up at the CFPB on Monday for work, with Mulvaney operating out of Cordray’s former office. While in Congress Mulvaney had voted in favor of doing away with the agency he now claims to lead.
Mulvaney sent an email to agency staff disputing a separate message sent by English in which he asked CFPB employees to disregard her instructions and to inform the agency's general counsel of any communications from her related to bureau duties.
Among the other actions taken by Mulvaney was to announce a freeze on rulemaking actions at the CFPB, a move that was praised by both credit union trade associations. As CUToday.info.is reporting here, both CUNA and NAFCU sent a letter to Mulvaney on his first day requesting such a freeze be put in place.
Whether Mulvaney has legal authority to issue such a freeze will need to be decided by the courts.
“We’re pleased to see the bureau halt rulemaking activities for time being, as we’ve been pushing for an end to burdensome rulemakings since the start of the new administration,” said Ryan Donovan, CUNA’s chief advocacy officer, in a statement. “While credit unions do not want more new rules and requirements, they do need fixes for current rules that are burdensome for credit unions, and more exemptions where possible, and CUNA looks forward to working with the bureau to get those fixes moving forward for the benefit of consumers.”
Mulvaney also ordered a 30-day hiring freeze.
There is at least some relief for CFPB employees: celebrity chef José Andrés—featured on a recent edition of 60 Minutes for his work in feeding people in Puerto Rico–has offered a free drink at any of his Washington, D.C.-area restaurants to employees at the CFPB.