Senators urge first step in dismantling CFPB: 'Fire Cordray'

Republican Senators Ben Sasse, R-NE, and Mike Lee, R-Utah, have written to Vice President-elect Mike Pence urging the Trump administration to fire Richard Cordray, the director of the Consumer Financial Protection Bureau.

The senators stated President-elect Donald Trump can and should remove Cordray because: a) the U.S. Constitution was intended to protect the American people from "unelected and unaccountable" bureaucrats; and b) the CFPB has harmed the nation's credit unions and community banks.

Sasse and Lee referred to the recent decision by the U.S. Court of Appeals for the District of Columbia Circuit in PHH Corp. v. CFPB, in which the judge declared the structure of the agency (though not the agency itself) a violation of the constitution because its director does not answer to any branch of the government and can be removed only by the president and only "for cause."

The senators argued that as the result of the judge's ruling in that case, that it is now established the president does have the discretion to remove the CFPB director without cause. Moreover they said:

A new CFPB director could substantially improve regulatory policy at the CFPB, but working toward a more accountable CFPB is about much more than that. It's about American constitutionalism and the rule of law. … Director Cordray's removal will be the first marker in the long process of rolling-back an agency that combines the powers of the executive, legislative, and judicial branches into the hands of a few unaccountable Washington elites.

Topics: Bank / Credit Union, Regulatory Issues

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