Following the surprise resignation of Consumer Financial Protection Bureau Director Richard Cordray, Law360 quoted Manatt’s Richard Gottlieb, co-chair of the firm’s financial services group, on what the news could mean for the CFPB’s leadership.
In a Nov. 15 email to his staff, Cordray announced he would resign his post by the end of the month. Questions about the president’s power to name an acting director (as opposed to allowing the bureau’s current deputy director to hold the position) have already begun to surface. As a result, there is speculation that the CFPB could face the same questions of legitimacy that existed when Cordray was serving as acting director prior to his Senate confirmation in 2013.
“A new director is not going to change supervision overnight, and supervision is where a lot of CFPB policy gets enacted,” Gottlieb told the publication. He explained that an acting director could significantly impact the CFPB’s vaunted, aggressive enforcement policies—the enforcement staff will still be in place, but companies will have a more sympathetic director to hear appeals.