November 17, 2017

S&P Global Market Intelligence quotes Gerry Sachs on Richard Cordray's departure from the CFPB

1 min

Gerry Sachs was quoted in a November 17, 2017, article in S&P Global Market Intelligence regarding Richard Cordray's departure from the CFBP. According to the article, President Donald Trump could roll back some of the Consumer Financial Protection Bureau's work as it loses its first-ever director — a controversial figure who was celebrated by consumer advocacy groups but loathed by the financial services industry. With the leadership role now open for the taking, Trump and the Republican-controlled Senate have the opportunity to kick off a new era of lighter regulation and enforcement at the CFPB. A new leader could also retroactively change agency rule-making or guidance spearheaded by Richard Cordray.

But lawyers said the industry should not expect a complete U-turn at the bureau. If the next director wanted to undo already finalized rule-making, it would have to be executed through a new round of proposed rule-making, which is a long and arduous process. Sachs said in an interview that it is possible, however, for the CFPB to "forestall" the recently finalized payday lending rule for a number of years while it undertakes a new study of its industry impact.