Richard Cordray, the head of the Consumer Financial Protection Bureau, faces a barrage of criticism as Republican President-elect Donald Trump prepares to take office and is predicted to change the structure of the organization that was established in the wake of the 2010 Dodd-Frank Act.
A recent article in The Wall Street Journal says Cordray is “disliked by many GOP lawmakers and financial-industry players for helping build the five-year-old agency into an aggressive financial regulator.”
The 2010 Dodd-Frank law states that the president may only remove its director for “inefficiency, neglect of duty, or malfeasance in office.”
Also to be considered is a court case on the constitutionality of the bureau’s single-director structure, saying it makes sense to wait for resolution of that case, which is now before the U.S. Court of Appeals for the D.C. Circuit. The CFPB has challenged an October decision by a panel of judges at the court who ruled the agency’s structure unconstitutional and granted the president the power to fire the director at will.
In a case involving a New Jersey mortgage lender challenging a $109 million fine levied by the bureau, a three-judge panel ruled that the agency’s structure is unconstitutional because the director has wide-ranging power with little oversight. Read more at NASDAQ: