Financial Services Report – Winter 2017

The holidays came early for the financial services industry. First, the Senate voted to repeal the CFPB's rule banning class waivers in arbitration agreements in consumer financial contracts. Then, Richard Cordray stepped down as CFPB Director. Former Director Cordray's attempt to name his interim successor hours before submitting his formal resignation created dueling interim directors when President Trump appointed OMB Director Mick Mulvaney to the same position. Now it's up to a federal judge to decide, with the first round going to President Trump in a denial of a request for an emergency TRO blocking Mulvaney's appointment. The next day, Mr. Mulvaney showed up to work anyway with a box of donuts. After the TRO was denied on November 28, he implemented a freeze on hiring and issuance of new regulations.