In his first request to the Federal Reserve for funding, Mick Mulvaney, acting Director of the Consumer Financial Protection Bureau (CFPB) requested for zero dollars in funding for Q2. The Federal Reserve directly funds the consumer agency, with directors sending their requests for funding for the quarter.
According to the New York Times, Mulvaney, in a letter to Federal Reserve Chair Janet Yellen, said that the bureau did not need any new funds to operate during the second quarter. The bureau has on deposit $177.1 million to cover emergencies and contingencies, which Mulvaney said were too large. He intended to spend approximately $145 million from that contingency fund.
Mulvaney argued that those additional funds that the Fed would have otherwise earmarked for CFPB, could be turned over to the Treasury Department to pay down a tiny amount of the government’s debts, the Times report stated.
According to political news website Politico, Richard Cordray, Former Director of CFPB had requested $217.1 million in the last quarter to fund the agency. Mulvaney said that Cordray had maintained a reserve fund in case of overruns or emergencies, but he didn’t see any reason for that since the Fed has always given the bureau the money it needed, the website said.
This letter from Mulvaney comes on the heels of an announcement by the agency that it was issuing a call for evidence to ensure that the Bureau was fulfilling its proper and appropriate functions to best protect consumers.
In the coming weeks, CFPB will be publishing in the Federal Register a series of Requests for Information (RFIs) seeking comment on enforcement, supervision, rulemaking, market monitoring, and education activities. These RFIs will provide an opportunity for the public to submit feedback and suggest ways to improve outcomes for both consumers and covered entities.