Consumer bureau chief tangles with Democrats over changes at agency
WASHINGTON — Mick Mulvaney defended his leadership of the Consumer Financial Protection Bureau — which he once called a “joke” — in front of a House committee Wednesday, dismissing criticism from Democratic lawmakers that he was weakening the agency.
The four-hour-long hearing was marked by partisan bickering about the Trump administration’s takeover of the CFPB, including the revelation that Mulvaney had spent more than $3,000 to frost the glass around his and other offices. Republicans repeatedly questioned whether the CFPB had so much power that Mulvaney could legally ignore their questions, while Democrats refused to even concede that Mulvaney was the agency’s legal acting director.
“He was illegally appointed by the president,” said California Rep. Maxine Waters, ranking Democrat on the committee. “I want to be very clear that Democrats’ participation in this hearing is not in any way an acknowledgment of Mr. Mulvaney’s legitimacy at the consumer bureau.” (That issue is still being fought in court.)
Since taking control of the bureau, Mulvaney has drawn Democrats’ ire by dropping a lawsuit against a payday lender, stripping enforcement powers from a CFPB unit responsible for pursuing discrimination cases and proposing that the agency’s powers be curtailed. Several lawmakers noted that the bureau had not fined or sued a single company during the past five months of Mulvaney’s leadership. Under its previous leadership, the CFPB announced three or four cases a month.
“We have essentially taken the cop off the beat,” said Rep. Carolyn Maloney, D-N.C. “Are you telling me that every single financial institution in America has suddenly snapped into full compliance?”
Despite having not filed any new lawsuits, Mulvaney said the CFPB will enforce the law, though he said he had a different approach than his predecessor and intended to be more deliberative. The CFPB is still litigating 25 cases that were already filed, and there are typically 100 active investigations, Mulvaney said.
“We’ve not filed any lawsuits since I’ve been there,” he said. “That doesn’t mean we’re not supervising and enforcing. We’re still going after bad actors.”
Despite dire warnings from some Democrats and consumer advocates, he said, “I have not burned the place down.”
One of the tensest moments of the hearing came when Rep. Keith Ellison, D-Minn., questioned Mulvaney’s decision to frost the glass around his offices. Mulvaney has preached the need for the CFPB to be more transparent, Ellison said, “but you have obscured yourself, physically. I find that to be ironic.”
Mulvaney said the alteration, which involved 13 offices and cost about $3,500, was proposed under his predecessor. Besides, he shot back, the public couldn’t peer into Ellison’s offices.
“How transparent is the door to your office, Mr. Ellison?” he asked. “I have been to your office. I can’t see into it.”