Trump Asserts Power Over The Bureau Of Consumer Protection. President Donald Trump and the outgoing director of the Consumer Financial Protection Bureau each named their own acting director to lead the agency. Only a few hours after director Richard Cordray resigned, the White House designated budget director Mick Mulvaney as the interim director of the Consumer Financial Protection Bureau. This is contrary to the outgoing head Richard Cordray as he picked his chief of staff as the temporary replacement. The disagreement called into the question as to who has legal authority over the matter. Federal officials say Trump has the power he needs to put his top budget aide in charge.
The succession plan had never been tested before as Cordray is the first and only appointed director of the Bureau. The Consumer Financial Protection Bureau is an agency of the United States government responsible for consumer protection in the financial sector. CFPB jurisdiction includes banks, credit unions, securities firms, payday lenders, mortgage-servicing operations, foreclosure relief services, debt collectors and other financial companies operating in the United States.
The Bureau’s creation was authorized by the Dodd-Frank Wall Street Reform and Consumer Protection Act– a legislation signed into law by Barack Obama on July 21, 2010. The act was a legal response to the financial crisis of 2007-2008 and marks an era of massive government regulation of Banking and Financial Services in the United States.