This week’s musical chairs at the helm of the Consumer Financial Protection Bureau sets the stage for what is sure to be a real test for not only the search for a permanent director, but the future of the controversial bureau.
Following Richard Cordray’s resignation as CFPB director, the agency was left in a war over who would take the lead. The outgoing Cordray announced his decision to appoint his chief of staff, Leandra English, to serve as his successor.
However, President Trump had different plans. After a quick court battle, the Trump administration was able to instill its chosen temporary director, Mick Mulvaney.
However, Mulvaney is the full-time director of the Office of Management and Budget, a much more high-profile agency than the CFPB, which is simply a liberal dream cooked up by Elizabeth Warren. This is why President Trump must act quickly in finding a full-time head for the CFPB and allow Mulvaney to run OMB.
Trump says the CFPB was a total disaster under Cordray.
The Consumer Financial Protection Bureau, or CFPB, has been a total disaster as run by the previous Administrations pick. Financial Institutions have been devastated and unable to properly serve the public. We will bring it back to life!
— Donald J. Trump (@realDonaldTrump) November 25, 2017
The CFPB was established under the 2010 Dodd-Frank financial reform law. Its monitoring activity came under scrutiny in 2013, when the actions were compared to NSA programs revealed by former government contractor Edward Snowden.
In 2014, Rep. Daniel Webster, R-Fla., described the CFPB tactics as “more than just NSA-style, this is more Gestapo-style collection of data.”
Many GOP lawmakers want to curb the agency’s powers and object to proposed new rules on consumer products.
Interim Director Mulvaney has said it’s time “to get it back to the point where it can protect people without choking capitalism.”
That raises the question: Who is the best person to get us to that point?
So far, we’ve seen several names floated for the position, including Rep. Jeb Hensarling, R-Texas. Hensarling has called the CFPB a “rogue agency that has done more to hurt consumers than help them” and sees the vacancy as “an opportunity to enact desperately needed reforms.”
Other critics of the bureau’s regulations that are being discussed for the directorship include Todd Zywicki, a law professor at George Mason University; Keith Noreika, soon-to-be-former acting head of the Office of the Comptroller of the Currency; former Florida Attorney General Bill McCullum; and Brian Brooks, an executive vice president and general counsel at Fannie Mae.
In my view, the person that makes the most sense is one only being talked about in the rumor mill and raised by Hugh Hewitt on Twitter: former Rep. Scott Garrett, R-N.J.
Garrett is currently Trump’s pick to lead the Export-Import Bank, but the selection has raised questions among members of the Republican coalition, including the business community.
During his confirmation hearing, Sens. Tim Scott, R-S.C., and Mike Rounds, R-S.D., voiced concerns about Garrett’s past efforts to end the Ex-Im Bank entirely. With these two key Republicans apprehensive, it isn’t a sure thing Garrett could be confirmed as the bank’s next president.
By nominating Garrett to lead the CFPB, Trump could avoid a loss on one of his nominees, and avoid splitting the Republican Party over it. In addition, it’s unlikely Garrett would face the same type of opposition at CFPB that he’s facing at Ex-Im.
There is also the added benefit of keeping high-ranking Republicans in the House and keeping a safe seat away from the Democrats. All we’ve heard from political analysts about 2018 is that the Democratic Party is going all out to swing control of the House and further jeopardize the president’s agenda.
The president has already appointed several sitting members to his cabinet, which have led to expensive special election battles in presumably Republican areas. The GOP can’t afford to waste more money protecting unnecessarily opened seats, like the tens of millions spent in Georgia, Montana, and now Alabama.
Scott Garrett is nothing if not a reformer, and there is no agency that needs that type of leader more than the CFPB.
Alice Stewart (@alicetweet) is a contributor to the Washington Examiner’s Beltway Confidential blog. She is a CNN Political Commentator and former communications director for Ted Cruz for President.
If you would like to write an op-ed for the Washington Examiner, please read our guidelines on submissions here.
