Anthony Alexis, Enforcement Chief at CFPB, Is Leaving Agency
Former Mayer Brown partner has served as Richard Cordray's enforcement chief since 2015.
October 13, 2017 at 12:46 PM
24 minute read
Anthony Alexis, the Consumer Financial Protection Bureau's enforcement chief, is stepping down after more than two years overseeing the agency's efforts to combat abuses by the financial industry, a departure certain to fuel speculation that Director Richard Cordray will leave soon to pursue the Ohio governorship.
Alexis, a former Mayer Brown partner who was named enforcement director in 2015 after holding the role in an interim capacity, announced his departure plans to CFPB staff Thursday afternoon, according to a former CFPB attorney who is familiar with the matter. CFPB spokesman David Mayorga on Friday confirmed Alexis is leaving but declined to provide further details. His exact departure date was not immediately known. Alexis was not reached for comment Friday.
Alexis's future plans—including any interest in returning to Big Law—are unclear. Mayer Brown has one of Washington's most active consumer finance practices. Washington partner Andy Pincus is lead counsel in a lawsuit, filed in September in Texas, that challenges the CFPB's new rule banning arbitration clauses that prevent consumers from banding together to file class actions.
The CFPB has posted the enforcement director role on its public listing of open jobs. The agency, created from the Dodd-Frank Wall Street reform law, indicated it is only considering internal candidates to lead the enforcement office, “whose mission is to aggressively and consistently enforce Federal consumer financial laws to protect consumers from harm, including by partnering with other federal and state agencies.”
Alexis's imminent departure comes at a precarious point for the CFPB. On Capitol Hill, Republican lawmakers are pushing to defang the bureau, in part, by rescinding its broad power to police “unfair, deceptive or abusive” acts or practices, commonly known as its UDAAP authority. Those same foes are advocating for subjecting the bureau to congressional appropriations and allowing the president to readily remove the CFPB director, who can only be fired “for cause” under the current structure.
Meanwhile, a Washington federal appeals court is expected to hand down a decision soon on the lawfulness of the bureau's independent, single-director structure. A divided three-judge panel of the U.S. Court of Appeals for the D.C. Circuit in October 2016 said the president should be empowered to fire the CFPB director at will.
The U.S. Justice Department, under U.S. Attorney General Jeff Sessions, abandoned the Obama-era agency this year after previously defending against constitutional challenges over its single-director structure. The Justice Department argued against the CFPB at a hearing in May in the pending constitutional challenge in the D.C. Circuit. Gibson, Dunn & Crutcher's Theodore Olson represents the plaintiff, PHH Corp., in that case.
Since then, the Justice Department prosecutors have dropped out of a handful of CFPB cases in which they had been assisting the bureau's trial teams.
Regardless of whether Cordray, a former Ohio attorney general, pursues his rumored interest in his home state's gubernatorial race, the CFPB is barreling toward a pivotal point. In July 2018, Cordray's five-year term will expire and President Donald Trump will have an opportunity to appoint a new director. Cordray has remained mum on any plans to leave the agency.
Under the leadership of Cordray and Alexis, whose background includes a stint as a federal prosecutor, the CFPB has asserted itself as an aggressive enforcer, scoring billions of dollars in relief for harmed consumers while also extracting steep fines. In one of the biggest cases, Wells Fargo & Co. agreed last year to pay a $100 million penalty to resolve allegations stemming from the bank's sales practices scandal. The fine remains the highest in CFPB history.
Alexis's departure comes as the CFPB pushes forward with significant cases against the mortgage servicer Ocwen Financial Corp. and the nation's largest servicer of student loan debt, Navient Corp., which the agency accused in January of “failing borrowers at every stage of repayment.”
In recent months, the CFPB suffered a string of setbacks in the courts. The bureau's enforcement lawyers lost a case in July against a Kentucky law firm accused of orchestrating an illegal kickback scheme. In August, a federal judge in Atlanta sanctioned a CFPB trial team for its “blatant disregard” of his orders to state the factual basis to support the agency's claims against four payment processors and a telemarketing company. The judge, Richard Story, dismissed several charges in the case.
Anthony Alexis, the Consumer Financial Protection Bureau's enforcement chief, is stepping down after more than two years overseeing the agency's efforts to combat abuses by the financial industry, a departure certain to fuel speculation that Director Richard Cordray will leave soon to pursue the Ohio governorship.
Alexis, a former
Alexis's future plans—including any interest in returning to Big Law—are unclear.
The CFPB has posted the enforcement director role on its public listing of open jobs. The agency, created from the Dodd-Frank Wall Street reform law, indicated it is only considering internal candidates to lead the enforcement office, “whose mission is to aggressively and consistently enforce Federal consumer financial laws to protect consumers from harm, including by partnering with other federal and state agencies.”
Alexis's imminent departure comes at a precarious point for the CFPB. On Capitol Hill, Republican lawmakers are pushing to defang the bureau, in part, by rescinding its broad power to police “unfair, deceptive or abusive” acts or practices, commonly known as its UDAAP authority. Those same foes are advocating for subjecting the bureau to congressional appropriations and allowing the president to readily remove the CFPB director, who can only be fired “for cause” under the current structure.
Meanwhile, a Washington federal appeals court is expected to hand down a decision soon on the lawfulness of the bureau's independent, single-director structure. A divided three-judge panel of the U.S. Court of Appeals for the D.C. Circuit in October 2016 said the president should be empowered to fire the CFPB director at will.
The U.S. Justice Department, under U.S. Attorney General Jeff Sessions, abandoned the Obama-era agency this year after previously defending against constitutional challenges over its single-director structure. The Justice Department argued against the CFPB at a hearing in May in the pending constitutional challenge in the D.C. Circuit.
Since then, the Justice Department prosecutors have dropped out of a handful of CFPB cases in which they had been assisting the bureau's trial teams.
Regardless of whether Cordray, a former Ohio attorney general, pursues his rumored interest in his home state's gubernatorial race, the CFPB is barreling toward a pivotal point. In July 2018, Cordray's five-year term will expire and President Donald Trump will have an opportunity to appoint a new director. Cordray has remained mum on any plans to leave the agency.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllJustin Muzinich, Trump's Pick for Treasury's No. 2, Files Ethics Pledge, Income Disclosure
3 minute readExxon Mobil Appeals Dismissal of Bid to Derail State AGs' Climate Change Actions
3 minute readTrending Stories
- 1Infant Formula Judge Sanctions Kirkland's Jim Hurst: 'Overtly Crossed the Lines'
- 2Preparing Your Law Firm for 2025: Smart Ways to Embrace AI & Other Technologies
- 3Abbott, Mead Johnson Win Defense Verdict Over Preemie Infant Formula
- 4Greenberg Traurig Initiates String of Suits Following JPMorgan Chase's 'Infinite Money Glitch'
- 5It's Time Law Firms Were Upfront About Who Their Salaried Partners Are
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250