Bank Regulation

Trump Outside Advisor Wants CFPB’s Cordray Fired

An outside advisor to President Donald J. Trump, Corey Lewandowski, said Sunday (July 30) that Consumer Financial Protection Bureau (CFPB) Director Richard Cordray should be fired.

According to a news report in Reuters, Lewandowski, Trump’s former campaign manager, took issue with the CFPB rule that makes it easier for consumers to go after financial companies via lawsuits. As it stands, lots of consumers have to settle disputes with credit card companies and over banking products through arbitration that is mandatory.  

“It’s my recommendation to the President of the United States to fire Richard Cordray,” Lewandowski told NBC’s “Meet the Press” on Sunday, reported Reuters.

Since Donald Trump became president, Republicans have been calling for the dismantling of the CFPB and the firing of Cordray or at least the stripping of some of his powers. As the law stands the president can only get rid of Cordray if there is cause, and the legal burden on the part of the president is high. Cordray’s term ends in July 2018.

Lewandowski also took issue with Cordray’s plan to run for governor of Ohio, saying that’s another reason he should be fired. 

“If he wants to run for governor of Ohio, go run for governor of Ohio, but don’t do so while you’re sitting in a federal office right now,” Lewandowski said on the talk show.

An appeals court is considering a case looking at whether or not the president should be able to fire Cordray at will instead of for cause.

If Trump fired Cordray ahead of a ruling on that case it could heighten the legal battle, noted the report. Lewandowski said his criticism of the CFPB was not because of the business interests of his clients, but Reuters noted Lewandowski previously worked for Avenue Strategies, which is registered to lobby for Ohio-based payday lender Community Choice Financial.

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