Mick Mulvaney formally asks Congress to neuter the consumer financial protection agency he heads


Mick Mulvaney, President Trump's budget director, asked Congress on Monday to weaken the power and independence of the Consumer Financial Protection Bureau, the consumer watchdog he temporarily heads as his second job. "The bureau is far too powerful, with precious little oversight of its activities," Mulvaney said in a note accompanying a 56-page report to Congress, his first as acting CFPB director. Among his suggestions were requiring that all significant rules be approved by Congress, allowing the president to fire the CFPB director for any reason not just specific and justifiable cause, and taking away the bureau's independent funding from the Federal Reserve and handing it to Congress.
"The power wielded by the director of the bureau could all too easily be used to harm consumers, destroy businesses, or arbitrarily remake American financial markets," Mulvaney said. Banking lobbyists cheered his suggestions, but consumer advocates frowned. Mulvaney's changes "would stab a knife through the heart of the CFPB's mandate to protect consumers from financial industry abuses," said Public Citizen's Lisa Gilbert. Ed Ed Mierzwinski at the U.S. Public Interest Research Group said that Mulvaney had already "made it clear" he wants "a weak agency that payday lenders and Wall Street can run roughshod over."
Mulvaney is set to testify before Congress next week, setting up a likely showdown with Sen. Elizabeth Warren (D-Mass.), the CFPB's strongest defender. Mulvaney has already steered the agency away from prosecuting payday lenders and frozen its enforcement actives, but the changes he is proposing require approval by Congress. "The chances of this are slim," The New York Times says, "as Democrats in the Senate have vowed to block any bills that would harm the consumer bureau."
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Before Mulvaney took over — an appointment subject to legal challenge — the CFPB provided about $12 billion in refunds and debt relief for consumers and played a central role in punishing Wells Fargo for creating millions of accounts without customer permission.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.
-
5 artfully drawn cartoons about Donald Trump's Epstein doodle
Cartoons Artists take on a mountainous legacy, creepy art, and more
-
Violent videos of Charlie Kirk’s death are renewing debate over online censorship
Talking Points Social media ‘promises unfiltered access, but without guarantees of truth and without protection from harm’
-
What led to Poland invoking NATO’s Article 4 and where could it lead?
TODAY'S BIG QUESTION After a Russian drone blitz, Warsaw’s rare move to invoke the important NATO statute has potentially moved Europe closer to continent-wide warfare
-
New York court tosses Trump's $500M fraud fine
Speed Read A divided appeals court threw out a hefty penalty against President Trump for fraudulently inflating his wealth
-
Trump said to seek government stake in Intel
Speed Read The president and Intel CEO Lip-Bu Tan reportedly discussed the proposal at a recent meeting
-
US to take 15% cut of AI chip sales to China
Speed Read Nvidia and AMD will pay the Trump administration 15% of their revenue from selling artificial intelligence chips to China
-
NFL gets ESPN stake in deal with Disney
Speed Read The deal gives the NFL a 10% stake in Disney's ESPN sports empire and gives ESPN ownership of NFL Network
-
Samsung to make Tesla chips in $16.5B deal
Speed Read Tesla has signed a deal to get its next-generation chips from Samsung
-
FCC greenlights $8B Paramount-Skydance merger
Speed Read The Federal Communications Commission will allow Paramount to merge with the Hollywood studio Skydance
-
Tesla reports plummeting profits
Speed Read The company may soon face more problems with the expiration of federal electric vehicle tax credits
-
Dollar faces historic slump as stocks hit new high
Speed Read While stocks have recovered post-Trump tariffs, the dollar has weakened more than 10% this year