Manatt’s Richard Gottlieb, co-chair of the firm’s financial services group, was quoted by American Banker in an article discussing how Consumer Financial Protection Bureau (CFPB) Director Richard Cordray’s tenure could play out.
Speculations surrounding Cordray’s future included the possibility of President Trump firing him, as well as talk of Cordray quitting to run for Ohio governor. If Cordray does not quit soon, according to the publication, it could be that he “played on” his political aspirations in order to keep Trump from firing him.
Another possibility is that Trump is waiting for a ruling in the court case PHH Corp. v. CFPB to make a decision on Cordray. Last year, a panel of judges ruled that the CFPB director could be fired at will, but the CFPB successfully appealed that decision in the D.C. Court of Appeals. The court threw out the original decision and agreed to review the case.
“Trump is waiting for the en banc decision in PHH,” said Gottlieb. “Firing Cordray would lead to a potential CFPB challenge because the bureau could theoretically ignore the order absent cause for the termination.”
Read the article here.