The Conservative Treehouse posted an article today about the change in leadership at the Consumer Financial Protection Bureau (CFPB). The current director, Richard Cordray, is resigning from the position. There are some constitutional problems with the CFPB, in that it is accountable to no one–not even the voters.
The article reports:
A federal court found the CFPB Director position held too much power and deemed it unconstitutional. The court decision noted that giving the President power to fire the Director would fix the constitutional problem.
Senator Elizabeth Warren is complaining that with the resignation of Cordray, the directorship should automatically go to the Deputy Director. Instead, President Trump is planning to appoint Mick Mulvaney as temporary head of the agency until a permanent person can be appointed. Senator Warren has tweeted that this is unacceptable.
However, the article goes on to explain why President Trump’s appointment of a temporary director would be legal:
President Trump has power to appoint the interim or ‘acting‘ head of the agency in the case of a vacancy just like he would any other vacancy. [Important Reminder: A DC appellate court already ruled the legal issues with the CFPB Director position necessitate oversight by the executive branch.] The President fills the vacancy using the familiar mechanism of the Federal Vacancies Reform Act (FVRA); until such time as a permanent replacement is nominated and confirmed by the Senate.
The Dodd-Frank statute Warren cites doesn’t provide a mechanism in case of vacancy. It has a provision for when the Director is “absent” or “unavailable”, both considered temporary terms by design, but not when the Director-ship is “vacant”.
The resigning director, Richard Cordray, (who resigned from a confirmed position) cannot appoint his replacement; that responsibility falls to the President.
Nowhere in Dodd-Frank statute does congress say they are repealing Federal Vacancies Reform Act for the Consumer Financial Protection Bureau. Therefore FVRA applies to CFPB regardless of whether Senator Warren likes the designated person assigned, or not.
Please follow the link to the original article to read the entire story. It is much more colorful than what I have posted here!