Cordray’s Work Has Been A Cause For Celebration, Not Dismissal
WASHINGTON, D.C. – Today, following the suggestion of Gary Cohn, President Trump’s National Economic Council director and the former president of Goldman Sachs, calling for the replacement of Consumer Financial Protection Bureau’s director, Richard Cordray, Allied Progress released the following statement from its executive director, Karl Frisch:
“If President Trump moves to dismiss CFPB director Richard Cordray, he will be overstepping his constitutional authority. Contrary to what Trump may think, this is not his reality show. He can’t just run around firing people.”
“Millions of Americans have felt the impact of Richard Cordray’s work as the Consumer Bureau’s director. Under his leadership the CFPB has returned more than $12 billion to 27 million Americans who have been wronged by credit card companies, payday lenders, debt collectors and other predatory financial industries. Director Cordray’s work is a cause for celebration, not dismissal.”
“It is hardly surprising that President Trump has tasked Gary Cohn to lead the fight against Cordray and the Consumer Bureau. Before coming to work for Trump he was the president of Goldman Sachs. The last thing big banks like Goldman want is an aggressive consumer watchdog that holds corrupt financial institutions accountable.“
Karl Frisch is available to speak to members of the media regarding Trump’s efforts. Contact Mike Czin at 202-286-7654 or firstname.lastname@example.org.
Trump Can’t Just Fire Cordray
- Like other financial regulators, the CFPB director serves for a fixed term. On July 16, 2013, the Senate voted 66-34 across party lines to confirm Richard Cordray to a five-year term as director of the CFPB. [Henry B. Hogue, Marc Labonte, and Baird Webel, “Independence of Federal Financial Regulators,” Congressional Research Service February 24, 2014; S. Senate Roll Call Vote on Nomination Number PN157, Confirmation of Richard Cordray, of Ohio, to be Director of the Bureau of Consumer Financial Protection, July 16, 2013, U.S. Senate.gov website; “PN157—Richard Cordray—Bureau of Consumer Financial Protection, Confirmation,” July 16, 2013, Congress.gov website; and Establishment of the Bureau of Consumer Financial Protection, 12 USC § 5491 (2010).]
- The law permits the president to remove the director only “for inefficiency, neglect of duty, or malfeasance in office.” [Establishment of the Bureau of Consumer Financial Protection, 12 USC § 5491 (2010).]
- While a panel of three federal judges recently ruled 2-1 that the President can fire the director of the CFPB without cause, this decision breaks with eight decades of precedent, and the CFPB has asked for the case to be heard by the full D.C. Circuit. [PHH, et al. v. Consumer Financial Protection Bureau, No. 15-1177, Document No. 1646917 (U.S.C.A. Oct. 11, 2016); Brian Simmonds Marshall, “An Easy Case: Why a Federal Appeals Court Should Reject a Constitutional Challenge to the CFPB,” American Constitution Society Blog, April 11, 2016; U.S. Court of Appeals, April 12, 2016.]
There Is Not Cause to Dismiss Cordray
- Under Director Cordray’s leadership, the CFPB has provided nearly $12 billion in relief to 27 million Americans in its first five years. Under his leadership the CFPB has also successfully resolved more than ninety enforcement cases against both big banks and small-time fraudsters. [Consumer Financial Protection Bureau, “Factsheet: Enforcing Federal Consumer Protection Laws,” July 13, 2016; Ben White and Andrew Hanna, “The Permanent Crisis in Banking,” Politico, October 6, 2016.]
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Allied Progress is a nationwide, progressive advocacy organization that uses hard-hitting research and creative campaigns to hold Wall Street and powerful special interests accountable. Since launching in 2015, the organization has led high-profile campaigns on several issues including reforming the payday lending industry and exposing the those working to cripple the Consumer Financial Protection Bureau (CFPB).