Monday Morning at CFPB: Donuts and Two Bureaucrats Claiming They’re in Charge

From: Bloomberg

By Elizabeth Dexheimer

  • Trump has named one interim director, Cordray tapped another
  • Lawsuit has already been filed to decide who will take over


President Donald Trump last week tapped Mick Mulvaney, the White House budget director and a fierce critic of the bureau, to serve as temporary director — after outgoing CFPB Director Richard Cordray, a Democrat, named his chief of staff and long-time aide Leandra English as his successor.


FDIC Chief Warns Over Relaxed Banking Regs


Martin Gruenberg, the chairman of the Federal Deposit Insurance Corporation who is leaving the government agency, expressed concern that regulators may be doing too much to roll back rules that were put in place after the Great Recession and financial crisis.

According to a news report in Reuters, citing comments Gruenberg made at a forum on regulation and markets, he believes the existing rules have made the country’s banking industry safer without impacting the profitability of U.S. financial institutions. “The danger is that changes to regulations could cross the line into substantial weakening of requirements,” the government official said. “Let’s be clear: Our largest banking organizations are not voluntarily holding the enhanced capital and liquid asset cushions required by current rules.”

Regulation Can’t Solve Cybersecurity Problems, Fed Official Says

From: Bloomberg

By Yalman Onaran

  • Arthur Lindo says regulators backing away from 2016 proposal
  • Government needs to co-operate with private sector, he says

More rules may not be the best answer to protecting the financial system against cyber attacks, a Federal Reserve official said.

“I don’t think the solution to the cybersecurity problem rests in regulation,” Arthur Lindo, senior associate director of the Fed’s division of supervision and regulation, said Monday at a banking conference in New York. “We’re going to try a more flexible approach.”

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CFPB Settlement With Student Loan Trust Raises Red Flags

From: RealClearEducation

By Andrew Wilford

A settlement between the Consumer Financial Protection Bureau (CFPB) and Donald Uderitz, owner of Vantage Capital Group (VCG), has major implications for students with loan debt. Based on media coverage of the settlement, most casual readers might believe that hundreds of thousands of former students may see their student debt wiped away—all thanks to administrative errors by the trust holding the debt, National Collegiate Student Loan Trusts (NCSLT). Unfortunately, this narrative oversimplifies what appears to be an attempt by the CFPB to provide Uderitz with lucrative responsibilities using extrajudicial means.