Outside adviser to Trump calls for firing
of CFPB head Cordray
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[July 31, 2017]
By Sarah N. Lynch and Susan Cornwell
WASHINGTON (Reuters) - An outside adviser
to U.S. President Donald Trump called on Sunday for the firing of
Consumer Financial Protection Bureau director Richard Cordray.
Corey Lewandowski, Trump's former campaign manager who still speaks
regularly to the president, criticized a CFPB rule that would make it
easier for consumers to sue financial companies. Currently, many
consumers are required to settle disputes related to credit cards and
other banking products through mandatory arbitration.
ďItís my recommendation to the president of the United States to fire
Richard Cordray,Ē Lewandowski told NBC's "Meet the Press."
The CFPB is the brainchild of Massachusetts Democratic Senator Elizabeth
Warren. Created by the 2010 Dodd-Frank Wall Street reform law, the
bureau is charged with protecting consumers from predatory lending
practices that were commonplace during the financial crisis.
Under current law, the president can only fire Cordray for cause. The
legal burden to show cause is high, and Cordray's term does not expire
until July 2018.
Cordray is widely expected to run for governor in Ohio, though he has
not announced any plans to do so.
Lewandowski said Cordray's potential political aspirations were part of
the reason he should be ousted, saying "if he wants to run for governor
of Ohio, go run for governor of Ohio, but donít do so while youíre
sitting in a federal office right now."
A CFPB spokesman did not have any immediate comment in response.
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Consumer Financial Protection Bureau Director Richard Cordray speaks
in Washington, October 17, 2014. REUTERS/Larry Downing
Republicans fought the creation of the CFPB and have long complained
the agency wields too much power without enough accountability to
the president or Congress. They have accused it over imposing overly
burdensome regulations that they say may unduly harm consumers.
A U.S. appeals court is weighing a case involving whether the
president should be allowed to fire Cordray at will, and not just
for cause. If Trump were to remove Cordray prior to the courtís
ruling, it would likely escalate the ongoing legal battle.
When asked if his comments about the CFPB were driven by business
interests he represents, Lewandowski said he had no clients with
such interests before the agency.
However, Lewandowski previously worked for Avenue Strategies, which
is registered to lobby for Ohio-based payday lender Community Choice
(Reporting by Sarah N. Lynch; Editing by Nick Zieminski)
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