Cordray’s CNBC interview raises more questions than answers

Cordray interview CFPB Director Richard Cordray has not made a habit of participating in in-depth interviews very often. Recently however, Director Cordray finally shared some thoughts about his role as the head of the CFPB and the future of the agency during an interview with CNBC’s chief Washington correspondent John Harwood.

The conversation focused primarily on the recent change in political winds in Washington and Cordray’s perspective on the CFPB’s role in holding financial institutions accountable while protecting consumers.

No mention of Dodd-Frank or CFPB in Trump’s Congressional address

Trump speech to CongressOn Tuesday, President Donald Trump delivered his first speech to Congress. Not surprisingly, the President devoted a significant portion of the address to setting down clear principles for the repeal and replacement of the Affordable Care Act, restating his mission to provide tax relief for the middle class, reforming the country’s immigration system, and rebuilding the nation’s military and infrastructure.

Conspicuously absent from the President’s address was any mention of Wall Street, the Dodd-Frank Act or the CFPB.

Trump orders agencies to create deregulatory task forces

On February 24, 2017, President Trump signed an executive order titled “Enforcing the Regulatory Reform Agenda.” That order requires that every agency establish a task force to evaluate existing regulations and to make recommendations regarding their repeal, replacement or modification. In addition, each agency head must designate an agency official as it “Regulatory Reform Officer” (RRO). Each RRO is responsible for overseeing “the implementation of regulatory reform initiatives and policies to ensure that agencies effectively carry out regulatory reforms, consistent with applicable law.”

Hensarling memo reveals plans for CFPB overhaul

Earlier this week, House Financial Services Committee Chairman Jeb Hensarling circulated a memorandum to committee leaders outlining potential upcoming changes to the Financial CHOICE Act that will be introduced during the 115th Congress.

Those proposed changes would affect several significant aspects of the Dodd-Frank Act, such as providing regulatory relief for strongly capitalized banks, taking steps to end “too big to fail,” and drastically reducing the CFPB’s authority.