Why hasn’t Trump fired CFPB Director Cordray?

Why hasn't Trump fired Cordray?On April 17, 2017, Politico reported that top White House economic aide, Gary Cohn, recently met with CFPB Director Richard Cordray and delivered an ultimatum: Resign or face removal by President Trump.

According to the article, Cohn “had heard the rumors that Director Cordray wanted to run for governor in Ohio.” According to people familiar with the meeting, Cohn left the dinner thinking that those rumors were accurate. As a result, the White House opted to delay efforts to fire Cordray because the Trump Administration feared that ousting Cordray might “cause a sensation that could boost his candidacy and juice his fundraising.”


House engages in heated debate about constitutionality of the CFPB

House debates CFPB constitutionality

On March 21, 2017, the House Financial Services Committee’s Subcommittee on Oversight and Investigations conducted a hearing entitled “The Bureau of Consumer Financial Protection’s Unconstitutional Design.” The hearing featured four witnesses: Ted Olson, Saikrishna Prakash, Adam White, and Brianne Gorod. The hearing is archived and can be viewed here.

Rather than allowing the witnesses to offer their expertise on the CFPB’s constitutionality and design, House Republicans and Democrats on the subcommittee used the hearing as a platform to express their opinions of the virtues of the CFPB’s mission and accomplishments rather than evaluating and critiquing the agency’s constitutionality.


House subcommittee to hold hearing on CFPB’s constitutionality

House subcommittee hearing CFPBOn March 21, 2017, the Subcommittee on Oversight and Investigations of the House Committee on Financial Services will hold a hearing entitled “The Bureau of Consumer Financial Protection’s Unconstitutional Design.” Based on the title of the hearing, isn’t hard to guess where the committee stands on the issue of the CFPB’s authority and constitutionality.

According to the memorandum from the Committee’s Majority Staff to Committee Members, the hearing “will examine whether the structure of the Bureau of Consumer Financial Protection (“Bureau”) violates the Constitution as well as structural changes to the Bureau to resolve any constitutional infirmities.”


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