Coming on the heels of the Presidential election results, the CFPB circulated an internal e-mail suspending a reorganization that would have stripped the Office of Enforcement’s autonomy to open investigations and issue civil investigative demands.
Bloomberg Law reported the suspension after obtaining a copy of the internal e-mail. According to the Bloomberg article, Bryan Schneider, who leads the Bureau’s Division housing its supervision, enforcement, and fair-lending (SEFL) functions, reversed his earlier decision to reorganize the SEFL Division:
I continue to believe that SEFL should make changes to its organization, processes, and procedures to remain effective and efficient in protecting consumers in light of experience and new circumstances. However, the feedback I received raised important concerns that warrant more considered thought and analysis.
As we previously blogged, the reorganization would have created a new Office of SEFL Policy and Strategy, headed by Peggy Twohig, that would decide when to open enforcement investigations and whether potential violations uncovered during examinations would be transferred to enforcement attorneys.