CFPB Ruling Could Heighten Uncertainty

Chaos Atop CFPB Could Get Worse After Appeals Court Ruling
– American Banker

Manatt’s Richard Gottlieb, co-chair of the firm’s financial services practice, was quoted by American Banker for an article on the uncertainty that could follow a court decision impacting who is permitted to run the CFPB.

The publication noted that the U.S. Court of Appeals for the D.C. Circuit has been deliberating since April on whether Mick Mulvaney can continue as acting CFPB director.

"What if the court agrees that Mulvaney can't be in that position, not because the appointment is improper, but because he's not sufficiently independent?" asked Gottlieb.

If the court is forced to decide, the president has broad discretion but it can't be someone who holds another position within the executive branch," Gottlieb said. "Congress designed the CFPB to be an autonomous bureau and it can't be autonomous if the director is somebody that already reports directly to the president."

Read the article here

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