Two CFPB critics appointed to leadership roles at the bureau

The newest senior leaders of the Consumer Financial Protection Bureau (CFPB) might not be anticipating long-term employment.

Jeffrey Clark was appointed as senior advisor to Mark Paoletta, the CFPB’s new chief legal officer. Both had a tenure at the Center for Renewing America, a conservative think-tank founded by Russell Vought that has advocated for the agency to be dissolved.

American Banker first reported the news of Clark’s appointment over the weekend.

Clark was a former acting assistant attorney general in the first Trump administration’s Department of Justice’s who allegedly helped Trump overturn the 2020 presidential election. He was indicted in Georgia and survived an effort to be disbarred in Washington, D.C. The indictment was later dropped.

Vought is now the confirmed head of the Office of Management and Budget (OMB) and the acting head of the CFPB until Jonathan McKernan is confirmed by the Senate. Clark’s appointment comes at a tumultuous time for the agency, whose workers have been ordered by Vought not to work in any capacity.

Vought also sought to shut off the bureau’s funding, but a lawsuit brought by the City of Baltimore and the Economic Action Maryland Fund (EAMF) that was filed on Feb. 12 has stalled that effort. On Feb. 13, the plaintiffs and defendants in the suit filed a joint motion stating that they’ve agreed to a preliminary injunction on any efforts by the CFPB or Vought to disrupt funding or shut down the department. The injunction expires on Feb. 28.

In a separate lawsuit late last week, a federal district court judge temporarily prohibited the Bureau from laying off more staff until March 3 at the earliest. District Court Judge Amy Berman Jackson also barred the CFPB from “deleting” or “removing” data and from transferring money in its reserve fund.

HousingWire looked looked at McKernan’s record and what kind of agency he would potentially lead.

For a complete timeline of what’s happened at the CFPB since Trump’s inauguration, see here.