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1700 G Sirect NWI, Washington, DC 2050
April 4, 2018
‘The Honorable Elizabeth Warren
United States Senate
317 Han Senate Office Building
‘Washington, DC 20510
Dear Senator Watren:
‘Thank you for your letter of March 16, 2018 regarding my prior responses tothe letters you have
sent me,
First an apology: I was not aware that we had not responded to your leter of November 27,
2017. 1 was under the impression that we had replied to each of your nine leters during ry
roughly four months atthe Bureau of Consumer Financial Protection (“Bureau”). A separate
response to that letter is attached here to remedy that shortcoming. Again, my apologies
Secondly, a thank you: I very much appreciate your recent recognition of my appointment by
President Trump as the Acting Director of the Bureau. I believe that isthe first time you have
done that; I think it accurately reflects the state of things at he Bureau
To the substance of your letter:
| could go through the almost eleven pages of single-spaced allegations of all that has supposedly
gone wrong atthe Bureau under my leadership. As you can imagine, have a very different take
fn hat is actually happening atthe Bureau (and, tllingly ny information is based on being
here and does not rely on sources such as leaked ~ and sometimes provably false - materials.)
But inthe end { doubt that would prove very productive forcither of us.
‘The basic theme of your leters fairly straightforward: you are unsatisfied with my responses.
(On that topic, I can understand your frustration. When I served on the House Committee on
Financial Services as a Member of Congress, I was frequently similarly frustrated with what L
perceived to be the lack of responsiveness, transparency anc accountability atthe Bureau
Indeed, we had trouble atthe time in even getting the Direcior to adequately respond to questions
at hearings, let alone getting writen answers to our questios. 1 think the Committee Chairman
‘was ultimately forced to issue 23 subpoenas in order to try to get some meaningful oversight
accomplished.
‘consumerfinance.govencourage you to consider the possibility thatthe frustration you are experiencing now, and that
which I hada few years back, are both inevitable consequerces of the fat thatthe Dodd-Prank
‘Wall Street Reform and Consumer Protection Act insulates the Bureau from virally any
accountability to the American people through their elected representatives. Put another way:
the Bureau was eretled tobe fess accountable than other government bureaucracies, You
‘originally conceived ofthis agency as one that should be “free of legislative micromanaging,
‘and recently reiterated that “the whole idea” ofthe Bureau as to “insulate it fom political
influence tothe extent possible,"® but I think most folks woald interpret that exactly as Tam
suggesting: less accountable and less transparent. Indeed, itis hard to read “insulate it from
political influence” in any other way.
{lam trying to improve on the Bureau's record on that somewhat. Toward that end, Ihave
revised the Bureau's strategic plan to align it with Congressional intent; Ihave begun taking
steps to bea responsible steward of Bureau funding; and we have launched a Call for Evidence
to solicit publie comment regarding most aspects of the Bureau's operation,
Sill, none ofthat will change the Bureau’s DNA, which isthe Dodd-Frank Act that create it
Only by changing the oversight requirements can the Bureas truly be made permanently
accountable and transparent. Inthe semi-annual report to Congress released by the Bureau
‘esterday, you will find several legislative recommendations to accomplish exactly that
| hope very much that, together pethaps, we can work to fixthe source of our mutual frustrations
with the Bureau.
‘As to the 105 specie writen interrogatories in your most recent eter: the law requires me to
appear before Congress at semi-annual hearings. [am looking forward to satisfying that
statutory requirement this month. And I look Forward to discussing these issues, and my
legislative recommendations forthe Bureau, when I testify before the Committe.
Sincerely,
fick Molvaney
‘Acting Director
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