The White House insisted Saturday that President Trump has the authority to appoint a successor to temporarily oversee the Consumer Financial Protection Bureau, rather than a former acting director.
In a call with reporters, senior administration officials pointed to the Federal Vacancies Act as offering Trump the authority to appoint someone to oversee the agency. The officials agreed only to speak to reporters on condition that their names not be used.
“We believe this move by the president is a typical, routine move exercised by the president under the Vacancies Act … We think this move is supported by the clear reading of the Vacancies Act,” a senior administration said, pointing to the 1998 statute that provides for a president to fill a vacancy for a Senate-confirmed position.
The White House had sought counsel from the Office of Legal Counsel within the Department of Justice, which weighs in on decisions to guide the executive branch on what is legal and what is not.
The dispute over who is in charge of the agency began when two officials were appointed to the post Friday. Trump said Friday that he was naming White House Office of Management and Budget Director Mick Mulvaney to the post temporarily, but outgoing CFPB Director Richard Cordray announced he was tapping his chief of staff, Leandra English, to be his successor.
The CFPB was established during the financial crisis that began in 2007 to set regulations on consumer finance products, like credit cards and auto loans. Republicans want to revamp the agency because they say it is responsible for saddling banks with unnecessary regulations, while Democrats have tried to stave off the influence of the Trump administration on CFPB.
Mulvaney has said that he wishes the agency didn’t exist and has called it a “joke.” He is expected to continue in his role as budget director, but it’s unclear to what extent he will carry out both responsibilities.
Sen. Elizabeth Warren, D-Mass., who has been supportive of the CFPB, has pointed to the Dodd-Frank Act’s language on Twitter to support Cordray’s actions.
The Dodd-Frank Act is clear: if there is a @CFPB Director vacancy, the Deputy Director becomes Acting Director. @realDonaldTrump can’t override that. pic.twitter.com/r949ccaJAb
— Elizabeth Warren (@SenWarren) November 25, 2017
White House officials maintained that the Vacancies Act trumped other laws related to replacements. Trump would make a final decision on a nomination for director in coming weeks, White House official said.
Asked whether the case would end up in court, a senior administration official replied, “We’re hoping that it doesn’t.”
The official continued, “We have gone out of our way to avoid a legal battle with Cordray and his actions show he is trying to provoke one.”
Senior officials played down a potential clash between Mulvaney and English when they head to CFBP on Monday. One official said Mulvaney would “show up Monday, go into the office and start working.” They still expected English to be at the agency Monday in her capacity as deputy.
“I know it makes a better story if there’s a clash of two directors but I don’t think that will happen … I think things will go on an ordinary course,” an official said.
