A Look At Early Favorites to Become the Next CFPB Director
With the news earlier this week that the Director of the Consumer Financial Protection Bureau (CFPB), Richard Cordray, would leave his post by the end of the month, members of the financial services industry and Washington insiders are already speculating on who might take the reigns of the consumer watchdog agency. But even before a permanent replacement can be found, there may be a battle over who leads the agency for the interim.
Since CFPB director requires Senate confirmation, an interim boss will be needed until President Trump’s nomination is approved by Congress. There are a few immediate options for the interim director. David Silberman is the current Deputy Director at CFPB. He has served at the CFPB since essentially the beginning and would likely bring continuity during a time of transition. However, given the current administration’s displeasure with the agency’s recent agenda, President Trump is expected to place someone in the position that more closely conforms to his vision for the Bureau.
President Trump could assign a member of his team that has already been confirmed by the Senate to manage the CFPB until a permanent replacement is approved. Possible pre-confirmed administration officials include Secretary of the Treasury Steven Mnuchin and Office of Management and Budget (OMB) Director Mick Mulvaney. Mnuchin’s Treasury Department has been hard at work this year developing a number of reforms to the Dodd-Frank Act, including significant changes to the structure and operations of the CFPB, and appears to be the logical choice for the White House.
As for a permanent replacement for Cordray, the list is populated by a group of men notable for their contempt for the CFPB. Rep. Jeb Hensarling (R- TX), fresh off the announcement that he will retire from Congress in 2018, is one person being discussed for the post. He currently serves as Chairman of the House Financial Services Committee. His proposed legislation, the Financial CHOICE Act, would strip the CFPB of much of its authority and make the agency accountable to Congress.
Vice-President Mike Pence’s chief economist, Mark Calabria, is another White House staffer whose name is being connected with the job. Calabria is most well known for his research and advocacy on financial services while working as the Director of Financial Studies at the Cato Institute. Calabria previously defended tribal sovereignty in online lending during his time at Cato and could prove an ally for responsible tribal economic development at the Bureau.
Acting Comptroller of the Currency Keith Noreika could be looking for a new job soon after the Senate voted to advance Joseph Otting’s nomination forward to be the permanent head of the Office of the Comptroller of the Currency (OCC). Since joining the OCC on an interim basis earlier this year, Noreika has been a constant critic of the CFPB and its rule-making. The OCC issued a report challenging the conclusions the CFPB relied upon when it developed the arbitration rule, and Norieka has been heavily involved in promoting online financial services.
A few more former Congressmen are also finding their names connected to the job. Randy Neugebauer, a former representative from Texas, spoke with President Trump back in January about assuming the post should Cordray step down or be fired. Scott Garrett, a former representative from New Jersey and vocal critic of the CFPB, may be looking for a new place in Trump’s administration after his hearings to run the Export-Import Bank might have derailed his chance at that position.
Regardless of the eventual nominee, the CFPB’s agenda and enforcement activity will likely see significant changes in the coming year. Whomever is at the helm for those changes is anybody’s guess at this time.
