The head of a controversial agency is resigning, and not everyone is sad to see him go.
Richard Cordray, director of the Consumer Financial Protection Bureau (CFPB) and an appointee of former President Barack Obama, plans to resign his office by the end of the month.
Cordray was first confirmed head of the independent agency established by Dodd-Frank, the landmark banking law created after the 2008 economic crisis that was designed to prevent future meltdowns. Still, some Republicans had urged President Trump to fire Cordray, who was critical of Republican efforts to undermine the Dodd-Frank law Republicans say does more harm than good.
John Berlau, senior fellow of the Competitive Enterprise Institute, wrote a personal appeal to the president to fire Cordray.
"I'm jumping up and down," says Berlau in response to the news. "This is a day that consumers, community banks, and credit unions can breathe a sigh of relief, because the torrid of red tape might finally be slowly but surely coming to an end at CFPB."
Berlau acknowledges that CFPB did penalize "small-time fraudsters," but he contends the CFPB with a lack of accountability was not needed to do that.
"Before, you would have Department of Housing and Urban Development (HUD) or one of the banking agencies," he explains.
The director of the Consumer Financial Protection Bureau is scheduled to serve a five-year term, so President Trump's nominee would be in office beyond the 2020 presidential election.
"When the Democrats rammed through Dodd-Frank when they ruled Congress in 2010, they, for some reason, seemed to operate on the assumption that they would be in power forever, and they made it a five-year term with the president only being able to remove for very strict conditions, like malfeasance, inefficiency and neglect of duty," Berlau explains. "I would still say constitutionally the president should have more power to remove the next director and that the CFPB should be under congressional appropriations. Even people in power that I agree with more could be subject to abuse of power if not held accountable by the Constitution's structures."
OneNewsNow reached out to the Economic Policy Institute and the Progressive Policy Institute. Neither organization responded.
Meanwhile, the Associated Press reports Cordray may run for governor of Ohio. Cordray was Ohio attorney general prior to his arrival at CFPB.