The attorney for Leandra English, the removed interim leader of the Consumer Financial Protection Bureau, in the continued battle of the temporary head of the bureau, went on to debate on a tweet by President Donald Trump, which said that the President had no intentions of allowing the bureau to stay independent.
A review of Former President Barack Obama’s Twitter account went on to bring up something interesting, the Ex- President had tweeted at least 6 times about CFPB, inclusive of a tweet from 2011 in which he had urged the public, in general, to support Richard Cordray to be appointed as the Director for the bureau.
“There is some degree of hypocrisy because no one has ever questioned President Obama’s public statements about the CFPB,” said the constitutional and administrative law expert – John Shu, who had worked for both of the Bush administrations.
President Trump, in his tweet, had said that Cordray who is the outgoing director has reached a new settlement with Wells Fargo in regards to the accused mortgage lending abuses.
“Fines and penalties against Wells Fargo Bank for their bad acts against their customers and others will not be dropped, as has incorrectly been reported, but will be pursued and, if anything, substantially increased,” the president had said in his tweet. “I will cut Regs but make penalties severe when caught cheating!”
When Cordray left his position as the Director at CFPB, he had appointed English as the interim director, whereas President Trump too nominated Mick Mulvaney to be the acting director. English went on to file a lawsuit against the situation and illegal appointment, but her request was dismissed, making Mike’s appointment to be legal. Therefore, English re-appealed.
After the hearings, which took place in December, English’s attorney – Deepak Gupta spoke to the press saying, “At the very moment that they are saying that there’s no threat to the agency’s independence, the president is tweeting about a particular enforcement matter involving a particular bank and that demonstrates better than anything else that the threat to independence here is not just hypothetical but real.”
However, in December of 2011, Former President Obama did ask the public to make a lobby against Republicans to install Cordray as his preferred director.
“Tell your Republican legislator to protect consumers by voting in Richard Cordray as @CFPB director tomorrow,” Obama had tweeted.
“With a director, the @CFPB can make sure Americans are treated fairly by mortgage brokers, payday lenders, and debt collectors,” Obama tweeted in 2012, which can also be understood as asking the CFPB what kind of financial institutions they need to focus on.
Shu said that the supportive statements should be seen as equally influential as the criticisms, as both kinds of the statements are instructive for the Bureau for how they allocate their efforts and resources.