administra
As we previously blogged about, Acting Director Scott Bessent circulated a message throughout the CFPB on February 3 directing “…all employees, contractors, and other personnel of the Bureau:
- Not to approve or issue any proposed or final rules or formal or informal guidance.
- To suspend the effective dates of all final rules that have been issued or published but that have not yet become effective.
- Not to commence, take additional investigative activities related to, or settle enforcement actions.
- Not to issue public communications of any type, including publication of research papers.
- Not to approve or execute any material agreements, including related to employee matters or contractors.
- Not to make or approve filings or appearances by the Bureau in any litigation, other than to seek a pause in proceedings.
While the intent of this edict seems to apply to all activities of the CFPB, it does not expressly mention supervisory activities and, as a result, it is “business as usual” with respect to examinations and other supervisory activities. It is unclear whether this was an oversight or intentional. We strongly urge the Acting Director to amend his edict to encompass supervision in order to preclude those activities as well while other activities of the CFPB are on hold in order to allow time for a thorough review of the supervisory process as well as interpretations embedded in the CFPB’s Supervision and Examination Manual.
For example, there is litigation pending before the Fifth Circuit that considers the legality of a revision made a couple of years ago by the CFPB to its UDAAP Exam Manual to define “unfairness” to include discrimination. At oral argument held on Monday of this week, a lawyer representing the CFPB requested a stay a continuance in accordance with Acting Director’s order described above.
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