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CFPB Opponents Suggest Trump Could Use DOJ to Justify Firing Cordray - ABI

President Donald Trump could fire Consumer Financial Protection Bureau Director Richard Cordray by getting legal justification from the Justice Department, according to a GOP lawmaker who’s critical of the CFPB’s structure, MorningConsult.com reported yesterday. Rep. Ann Wagner of Missouri, the chairwoman of the House Financial Services Subcommittee on Oversight and Investigations, said yesterday that the Office of Legal Counsel could provide an avenue to dismiss Cordray. She noted that the OLC gave the Clinton administration justification to avoid enforcing laws that it considered unconstitutional. That approach was supported by Ted Olson, a partner at the law firm Gibson, Dunn & Crutcher who is representing the mortgage servicer PHH in its effort to overturn the CFPB’s single-director structure. He said Dodd-Frank’s language, which only allows the president to fire the director on a “for cause” basis, would likely fall under the category of unconstitutional language that the president can choose not to enforce with OLC’s justification.

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