Mick Mulvaney lets the senator’s attacks convince Democrats to restructure the CFPB.
If Elizabeth Warren’s Wall Street Journal piece “Republicans Remain Silent as Mulvaney’s CFPB Ducks Oversight” had run three days later, readers would have thought it was an April Fools’ Day joke about the famously two-headed government agency.
Most Americans had not heard of the Consumer Financial Protection Bureau last Thanksgiving when its first director, Richard Cordray, resigned and proclaimed Warren acolyte Leandra English acting director, prompting President Trump to appoint cabinet member Mick Mulvaney to the same post. Senator Warren has not laughed much in the four months since a judge backed the president’s choice.
It was no wonder the public tuned out the CFPB narrative that Democrats have repeated since they controlled Congress and the White House and passed the 2010 Dodd-Frank Act, which created the bureau. The plot never changes — before Cordray’s resignation, Republicans opposed the bureau because it kept the financial industry honest; now they restrain the CFPB so businesses can cheat consumers.
Facts never get in the way of the banal narrative. In February, Patrick Rucker of Reuters reported that, according to unnamed sources, after Equifax disclosed its historic data breach on September 7, 2017, Cordray “authorized an investigation that month” and that acting director Mulvaney had “not ordered “subpoenas against Equifax or sought sworn testimony from executives, routine steps when launching a full-scale probe.” The “exclusive” was hardly news. The Dodd-Frank Act forbids the Federal Trade Commission and the CFPB from conducting independent inquiries into the same matter. Cordray may have authorized an investigation of the Equifax data breach, but the FTC ended up conducting the full-scale probe.
Cordray and Warren, who helped draft the law, surely recognized Rucker’s sleight-of-hand. Nevertheless, the senator tweeted, “Another middle finger from @MickMulvaneyOMB to consumers: he’s killed the @CFPB’s probe into the #EquifaxBreach.” Cordray, while campaigning for Ohio governor, wrote in the Washington Post that “the administration has . . . halted the investigation of Equifax,” with a link to the Reuters article as proof there had been something for Mulvaney to halt.