American Banker interviewed Manatt’s Richard Gottlieb, co-chair of the firm’s financial services group, on how the resignation of Richard Cordray, director of the Consumer Financial Protection Bureau (CFPB), could impact the bureau as a whole.
The publication noted that a resignation has seldom, if ever, signaled such a large change in direction for a federal agency. Under Cordray, the CFPB had earned a reputation as an aggressive regulator, but his departure gives the president an opportunity to use his appointment powers to roll back Cordray’s policies.
Gottlieb explained that a new CFPB director will have tremendous power to influence policy, although changes in supervision practices by agency examiners will take longer.
"We are likely to see a dramatic slowing down of rulemaking and the dismissal of certain enforcement actions," Gottlieb said. "The smart move would be to aggressively defend against enforcement actions on the theory that an industry-friendly director will ultimately be friendly to an appeal. But I don't think we will see a significant change on the supervision levels for many, many months."
Read the article here.