White House chief of staff claims press covering coronavirus to take Trump down

White House acting chief of staff Mick Mulvaney on Friday downplayed the threat of the coronavirus but acknowledged likely school closures and disruptions to public transportation in the United States as a result of the outbreak.

He also accused the press of peddling a false narrative about the administration “scrambling” to contain the virus, saying he briefed Congress with other top health officials six weeks ago. He accused the media of ignoring the coronavirus until now because publications were too preoccupied with Trump’s impeachment before that, which he called a “hoax.”

“Why didn’t you hear about it?” Mulvaney told an audience at the Conservative Political Action Conference (CPAC) Friday morning in a discussion with Stephen Moore, an economic expert at the Heritage Foundation. “The press was covering their hoax of the day because they thought it would bring down the president.”

Trump has similarly accused the media of stoking panic.

Mulvaney claimed that the press is only covering the virus now because they believe doing so will “take down the president.”

“Is it real? It absolutely is real,” Mulvaney said. “But you saw the president the other day — the flu is real.”

“Are you going to see some schools shut down? Probably. May you see impacts on public transportation? Sure,” Mulvaney said, adding, “We know how to handle this.”

Mulvaney’s remarks came as the Trump administration’s efforts to combat the virus are coming under increasing scrutiny. He argued that the administration is well-prepared while asserting that the virus is less severe than past illnesses because it has a lower fatality rate, describing it as less deadly than Ebola, SARS and MERS.  

Mulvaney’s appearance at CPAC comes as President Trump has downplayed concerns about the virus, telling reporters at a news conference Wednesday that he didn’t believe the spread of the virus was inevitable.

The virus has been contained in the U.S. thus far, but health officials have said that its spread is likely. State and local officials may order school closures or otherwise limit public gatherings if the virus begins to spread communities.

The U.S. stock market has experienced sharp declines over the past week amid concerns about the virus, which originated in China and has spread quickly in other countries across the globe.

“What I might do to calm the markets is turn the television off for 24 hours,” Mulvaney told the crowd at CPAC Friday, mentioning a note he received from a reporter about what the administration’s plans were to ease concerns.

Trump on Wednesday tapped Vice President Pence to lead the government’s response efforts, and Pence has since tapped a career health official at the State Department, Debbie Birx, to coordinate those efforts.

“Congratulations and thank you to our great Vice President & all of the many professionals doing such a fine job at CDC & all other agencies on the Coronavirus situation,” Trump tweeted late Thursday. “Only a very small number in U.S., & China numbers look to be going down. All countries working well together!” 

[The Hill]

Media

Mulvaney Acknowledges Quid Pro Quo In Trump Ukraine Call, Says ‘Get Over It’

The acting White House chief of staff Mick Mulvaney admitted on Thursday that President Donald Trump withheld foreign aid in order to get Ukraine’s help in the U.S. election.

“We do that all the time with foreign policy,” Mulvaney responded when a reporter pointed out that withholding funding from Ukraine “unless the investigation into the Democrats’ server happens” is a “quid pro quo.”

“Get over it,” he added later. “There’s going to be political influence in foreign policy. … That is going to happen. Elections have consequences.”

[Huffington Post]

Trump says Mulvaney had ‘no right’ if he cast doubt on infrastructure talks

President Donald Trump expressed frustrations against his acting chief of staff, Mick Mulvaney, for questioning the prospects of striking a deal with Democrats on an infrastructure plan, placing doubt on whether Mulvaney actually criticized the plan even though his comments were captured on camera.

In a newly released clip of a Fox News interview airing Sunday, Trump was asked whether he still wants to pursue a large infrastructure plan with Democrats even though Mulvaney threw cold water on the idea.

“Yeah, if Mick Mulvaney said that, then he has no right to say that. He tells me he didn’t say that and he didn’t mean it. He said it’s going to be hard to finance,” the President told “The Next Revolution” host Steve Hilton.

However, despite the President’s claim that Mulvaney hadn’t cast doubts on the plan, he did so on camera last month.

“Is this a real negotiation? I think it remains to be seen,” Mulvaney said at the Milken Institute in Beverly Hills referring to the infrastructure deal, adding, “I think there’s a much better chance of getting NAFTA passed than getting an infrastructure deal passed.”

The comment came as Democrats met with Trump and administration officials at the White House to discuss a potential infrastructure plan. Both parties suggested the meeting went well, but there hasn’t been much news on where the negotiations will go next.

Pressed further during the Fox News interview whether he’d still like to pursue an infrastructure plan with Democrats, Trump said he does want to move forward, but worried about raising taxes.

“I do, but I also think we’re being played by the Democrats a little bit,” he said.
“You know, I think what they want me to do is say, ‘well what we’ll do is raise taxes, and we’ll do this and this and this,’ and then they’ll have a news conference — see, Trump wants to raise taxes. So it’s a little bit of a game.”

[CNN]

Reality

Watch Mick Mulvaney say the thing Trump claimed he never said.

Student Loan Watchdog Quits; Blames Trump Administration

The federal official in charge of protecting student borrowers from predatory lending practices has stepped down.

In a scathing resignation letter, Seth Frotman, who until now was the student loan ombudsman at the Consumer Financial Protection Bureau, says current leadership “has turned its back on young people and their financial futures.” The letter was addressed to Mick Mulvaney, the bureau’s acting director.

In the letter, obtained by NPR, Frotman accuses Mulvaney and the Trump administration of undermining the CFPB and its ability to protect student borrowers.

“Unfortunately, under your leadership, the Bureau has abandoned the very consumers it is tasked by Congress with protecting,” it read. “Instead, you have used the Bureau to serve the wishes of the most powerful financial companies in America.”

The letter raises serious questions about the federal government’s willingness to oversee the $1.5 trillion student loan industry and to protect student borrowers.

Frotman has served as student loan ombudsman for the past three years. Congress created the position in 2010, in the wake of the financial crisis, as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act. As ombudsman and assistant director, Frotman oversaw the CFPB’s Office for Students and Young Consumers and reviewed thousands of complaints from student borrowers about the questionable practices of private lenders, loan servicers and debt collectors.

Since 2011, the CFPB has handled more than 60,000 student loan complaints and, through its investigations and enforcement actions, returned more than $750 million to aggrieved borrowers. Frotman’s office was central to those efforts. It also played a role in lawsuits against for-profit giants ITT Tech and Corinthian Colleges and the student loan company Navient.

Over the past year, the Trump administration has increasingly sidelined the CFPB’s student loan office. Last August, the U.S. Department of Education announced it would stop sharing information with the bureau about the department’s oversight of federal student loans, calling the CFPB “overreaching and unaccountable” and arguing that the bureau’s actions were confusing borrowers and loan servicers alike. Of the move, Frotman writes, “the Bureau’s current leadership folded to political pressure … and failed borrowers who depend on independent oversight to halt bad practices.”

In May, Mulvaney called for a major shake-up in Frotman’s division. The Office for Students and Young Consumers would be folded into the bureau’s financial education office, signaling a symbolic shift in mission from investigation to information-sharing. While the CFPB told NPR at the time that the move was “a very modest organizational chart change,” consumer advocates reacted with alarm.

Christopher Peterson, director of financial services at the nonprofit Consumer Federation of America, called the move “an appalling step in a longer march toward the elimination of meaningful American consumer protection law.”

In his resignation, Frotman also accuses the CFPB’s leadership of suppressing a report, prepared by his office, revealing new evidence that some of the nation’s largest banks were “saddling [students] with legally dubious account fees.”

The Trump administration has also taken steps outside the CFPB to curb oversight of the student loan industry. The Justice and Education departments have argued that debt collectors should be protected from state efforts to regulate them. And, earlier this month, Education Secretary Betsy DeVos moved to scrap a rule meant to punish schools where graduates struggle with poor earnings and deep debt. The department defended its decision, saying it would instead give borrowers school performance data so they can decide for themselves what colleges offer the best value.

Mick Mulvaney was tapped to run the CFPB while also serving as director of the Office of Management and Budget. Before joining the Trump administration, he was a Republican congressman from South Carolina and a fierce critic of the bureau he now manages. He once called the CFPB “a joke … in a sick, sad kind of way” because, Mulvaney argued, it often acted above the law with no accountability to Congress.

Frotman has served at the CFPB for seven years, since its inception. He arrived in early 2011 as part of the Treasury Department’s implementation team. Frotman began in the Office of Servicemember Affairs as senior adviser to Holly Petraeus. That office was instrumental in expanding service member protections under the Military Lending Act and in cracking down on lenders and retailers that preyed on service members.

Petraeus, now retired, tells NPR she felt “privileged” to have worked with Frotman at the CFPB. “Seth is a true public servant. I think he’s leaving for the purest of motives: He wants to help student borrowers.”

In response to a request for comment, the CFPB issued this statement: “The Bureau does not comment on specific personnel matters. We hope that all of our departing employees find fulfillment in other pursuits and we thank them for their service.”

[NPR]

 

CFPB chief Mick Mulvaney disbands consumer protection board

The Trump administration is disbanding a panel of experts focused on protecting consumers from financial abuse.

Members of the panel, called the Consumer Advisory Board, say Consumer Financial Protection Bureau Acting Director Mick Mulvaney has dissolved the group, which includes consumer advocates, financial industry representatives, community leaders and others. The board advises the CFPB, a federal agency formed after the housing crash to prevent financial abuse.

Mulvaney, told the board’s 25 members that they are being replaced and the panel overhauled, according to two of the members. These people requested anonymity since the announcement was not official yet.

“By both right-sizing its advisory councils and ramping up outreach to external groups, the bureau will enhance its ability to hear from consumer, civil rights, and industry groups on a more regular basis,” the CFPB said in a statement.

Under Dodd Frank, the 2010 financial reform law that created the CFPB, the consumer panel is required to meet twice a year. But meetings were repeatedly cancelled since Mulvaney took the helm at the bureau in November.

Nearly a dozen members of the consumer board have expressed concern about the direction of the CFPB.

“As the Bureau unilaterally shifts its mission from one prioritizing consumer protection and upholding fair market practices to one focused on industry regulatory relief, we see families, once again, being left behind,” Ann Baddour, the consumer panel’s chair and director of the Fair Financial Services Project at Texas Appleseed, said in the statement posted by the National Consumer Law Center.

[CBS News]

Mulvaney closes down consumer bureau office that polices racism in lending

The acting director of the Consumer Financial Protection Bureau (CFPB) has stripped an office devoted to lending discrimination of its enforcement power, according to an email released Thursday.

Acting CFPB chief Mick Mulvaney told bureau staff in a Tuesday email that he would transfer the agency’s Office of Fair Lending and Equal Opportunity to a department under his purview in an effort to streamline the agency.

Mulvaney said the fair lending office will focus on consumer education and advocacy under control of the office of the director. The bureau’s supervision, enforcement and fair lending division, a separate unit outside of the director’s office, will take over policing the lending market for racial discrimination.

“These changes are intended to help make the Bureau more efficient, effective, and accountable, and I plan to seek both internal and external input as I continue to evaluate how we work,” Mulvaney wrote, saying he didn’t expect layoffs from the move but also could not rule them out.

The decision enraged the CFPB’s progressive backers, who supported former Director Richard Cordray and his aggressive actions against lenders suspected of wrongdoing.

Cordray himself panned the “CFPB squatter leadership” for “interfering” with crucial bureau work.

“We took on tough cases about redlining and other violations,” Cordray tweeted. “Some don’t like it but it is the Law of the Land.”

Mulvaney and his staff insisted the restructuring is simply a matter of streamlining the CFPB while still cracking down on racial discrimination.

“It never made sense to have two separate and duplicative supervision and enforcement functions within the same agency — one for all cases except fair lending, and the other only for fair lending cases,” senior Mulvaney adviser John Czwartacki said in a statement. “By announcing our intent to combine these efforts under one roof, we gain efficiency and consistency without sacrificing effectiveness.”

Mulvaney, who as a GOP congressman opposed the CFPB’s existence, has sought to reshape the bureau from within.

The acting director has promised to make the bureau more responsive to the needs of the financial sector, reopened rules on payday loans and prepaid debit accounts, and called for firms subject to CFPB oversight to send complaints about the bureau’s investigative procedures.

Democrats and liberal political groups that fiercely defended the CFPB under Cordray argue that Mulvaney is destroying the agency and leaving vulnerable consumers without a powerful watchdog.

[The Hill]

Mulvaney requests no funding for Consumer Financial Protection Bureau

Every quarter, the Consumer Financial Protection Bureau formally requests its operating funds from the Federal Reserve. Last quarter, former director Richard Cordray asked for $217.1 million. Cordray, an appointee of President Barack Obama, needed just $86.6 million the quarter before that. And yesterday, President Donald Trump’s acting CFPB director, Mick Mulvaney, sent his first request to the Fed.

He requested zero.

In a letter to Fed chair Janet Yellen obtained by POLITICO, Mulvaney wrote that the bureau already has $177 million in the bank, enough to cover the $145 million the bureau has budgeted for its second quarter. Cordray had maintained a “reserve fund” in case of overruns or emergencies, but Mulvaney said he didn’t see any reason for it, since the Fed has always given the bureau the money it needs. Mulvaney, who is also Trump’s budget director, noted that instead of advancing the funds to the bureau, the Fed could return them to the Treasury and reduce the deficit.

“While this approximately $145 million may not make much of a dent in the deficit, the men and women at the Bureau are proud to do their part to be responsible stewards of taxpayer dollars,” Mulvaney wrote.

The Trump administration has not shown much interest lately in deficit reduction, but it has shown avid interest in reining in the independent CFPB. As a member of Congress, Mulvaney (R-S.C.) routinely denounced it as an overzealous regulator, and on his first day at the bureau after replacing Cordray in November, he trashed his new workplace as “an awful example of a bureaucracy gone wrong.” And even as Cordray’s former deputy, Leandra English, has fought Mulvaney’s appointment in court, he has moved swiftly to shake up its culture.

Earlier this week, he announced the bureau would reconsider its new rules designed to protect consumers from payday lending debt traps, and yesterday, he launched a formal review of how the bureau demands information from firms it investigates. He has even revamped the agency’s mission statement; the new wording suggests that its first priority should be “identifying and addressing outdated, unnecessary, or unduly burdensome regulations.”

The bureau was created in response to the financial crisis of 2008, and under Cordray, it returned nearly $12 billion to nearly 30 million ripped-off consumers, cracking down on predatory lenders, bullying debt collectors, and a range of Wall Street scoundrels. But the financial industry and many Republicans have portrayed it as an out-of-control liberal bureaucracy, a hotbed of the anti-Trump resistance nestled inside the Washington bureaucracy, with a budget untouchable by Congress and a director with unusually broad powers. And several federal judges have rebuked the agency for overstepping its authority in pursuit of scammers.

Mulvaney has not yet laid out his plans for the bureau, but it’s clear that in general he wants it to do less, so it’s not surprising that he wants it to make do with with less money. In his letter to the Fed, he said he had been assured that the cash the bureau already has on hand is “sufficient to carry out its statutory mandates for the next fiscal quarter while striving to be efficient, effective, and accountable.”

It’s just the latest sign that change is coming to the CFPB. As Mulvaney said after his first day as acting director: “Elections have consequences at every agency.”

[Politico]

Mulvaney installs 6 Trump loyalists at CFPB after revelations of anti-administration ‘Dumbledore’s Army’ uprising

Mick Mulvaney, the director of the Consumer Financial Protection Bureau, has installed six Trump loyalists in the agency. The news comes in the wake of revelations about a cadre of anti-Trump CFPB employees who called themselves “Dumbledore’s Army,” a reference to an anti-fascist underground group of students in the Harry Potter books.

As The Intercept’s Ryan Grim reports, Mulvaney announced in a Thursday memo his intention to bring those administration loyalists into the bureau that “by statute, is supposed to be an independent agency that was created in the aftermath of the 2007-08 financial crisis.”

Mulvaney’s short tenure at the helm of the CFPB has already been rife with controversy. In late November, President Donald Trump named him acting director of the agency when the former director stepped down. The move immediately caused scandal because Mulvaney also leads the White House’s Office of Management and Budget — and because the outgoing director had already named his former chief of staff, Leandra English, as his interim successor. Soon after, news that Mulvaney was directing staff to “disregard” English appeared — hence the cabal of resisters within the agency.

As The Washington Post reported shortly after it became clear Mulvaney was taking the reigns of the agency despite mounting legal challenges, the job makes him one of the most powerful men in the country.

The director of the CFPB, a federal judge quoted by the Post once noted, “enjoys more unilateral authority than any other officer in any of the three branches of the U.S. Government, other than the President.”

Of his six new hires, Grim noted Thursday, only three will work full-time for the agency — the other three, like the director himself, will split their time between the supposedly-independent bureau and their other jobs within the Trump administration.

[Raw Story]

Mick Mulvaney: The Day of the CBO ‘Has Probably Come and Gone’

During an interview with the Washington Examiner on Wednesday, Office of Management and Budget Director Mick Mulvaney trashed the Congressional Budget Office (CBO) as partisan and made a case that the country would be better off without it.

“At some point, you’ve got to ask yourself, has the day of the CBO come and gone?” Mulvaney said. “Certainly there is value in having that information, especially if they could return to their nonpartisan roots. But at the same time you can function, you can have a government, without a Congressional Budget Office.”

Mulvaney honed in on the CBO’s recently released analysis of the American Health Care Act (AHCA), passed by House Republicans last month and vociferously supported by President Trump. The nonpartisan office estimated that the AHCA will cost 23 million Americans their health insurance while dramatically increasing costs for older Americans and people with pre-existing conditions, in part because of the bill’s $834 billion cut to Medicaid over the next decade.

“Did you see the methodology on that 23 million people getting kicked off their health insurance?” Mulvaney said. “You recognize of course that they assume that people voluntarily get off of Medicaid? That’s just not defensible. It’s almost as if they went into it and said, ‘Okay, we need this score to look bad. How do we do it?’”

Mulvaney characterized the CBO’s analysis of coverage losses as “just absurd” and said, “ To think that you would give up a free Medicaid program and choose instead to be uninsured is counterintuitive.”

The CBO, however, doesn’t assume that people will “give up Medicaid.” Instead, it assumes people will lose Medicaid coverage nonvoluntarily because of eligibility lapses, raises at their jobs, and other developments that under the House Republican plan will cause them to become ineligible. Vox explains:

The AHCA would effectively end the Affordable Care Act’s Medicaid expansion by freezing federal support for it starting in 2020. Under current law, the federal government initially paid 100 percent of costs of Medicaid expansion beneficiaries, a percentage set to wind down to 90 percent in 2020 and stay at that level permanently. Under the AHCA, the federal government would keep paying for people who signed up for Medicaid expansion coverage before January 1, 2020, but not anyone who signs up after that.

Over time, this would also lead people currently enrolled to lose their benefits, and they wouldn’t be able to go back on the program thereafter. The AHCA drops funding for enrollees whose eligibility lapses for two or more months, and many working poor people cycle in and out of Medicaid as their income changes: They get a raise and no longer qualify for Medicaid; then they lose that job or take a pay cut and enroll again.

Mulvaney’s vision for a post-CBO America would involve his office taking the lead on estimating the impacts of major legislation — “I would do my own studies here at OMB as to what the cost and benefits of that reg would be,” he said.

But the danger of that approach was illustrated just last week by Trump’s budget proposal, which included a glaringly basic arithmetic error involving double-counting the estimated economic impact of tax cuts. Instead of acknowledging that double-counting the $2 trillion in savings was a mistake, Mulvaney told reporters that he and other Trump administration officials who worked on the budget did it on purpose.

When the first version of the AHCA was unveiled in March, Mulvaney tried to discredit the CBO before it even had a chance to release its analysis of the bill, arguing on ABC’s This Week that the CBO’s analysis of the Affordable Care Act (ACA) was off.

It wasn’t. FactCheck.org concluded that despite overestimating the number of people who who get subsidized insurance through ACA exchanges, the CBO “actually nailed the overall impact of the law on the uninsured pretty closely.”

The CBO “predicted a big drop in the percentage of people under age 65 who would lack insurance, and that turned out to be the case,” FactCheck.org wrote. “CBO projected that in 2016 that nonelderly rate would fall to 11 percent, and the latest figure put the actual rate at 10.3 percent.”

In short, Mulvaney, Health and Human Services Director Tom Price, and other AHCA-supporting Republicans are attacking the CBO simply because of its tough assessment of their preferred health care plan, which involves a huge tax cut for the rich.

What Republicans like Mulvaney are saying about the CBO during the Trump era is the opposite of what GOP members of Congress said when Bill Clinton was president. In the 1990s, Congressional Republicans demanded that the CBO score President Clinton’s budgets, dismissing his Office of Management and Budget as partisan.

During congressional testimony last week, Mulvaney, defending Trump’s budget proposal, made a case that the fiscal interests of the unborn should take precedence over the lives of present-day Americans — or at least those who rely on food stamps to eat or public schools to educate their children.

[ThinkProgress]

Reality

Mick Mulvaney trashed the CBO because they scored Trumpcare saying it would kick 24 million people off of their healthcare. That’s totally crazy because Mulvaney’s Office of Budget Management did their own calculations and came to the exact same conclusion.

It would be nice if The Washington Examiner called Mulvaney on his bullshit.

Ethics Agency Rejects White House Move To Block Ethics Waiver Disclosures

The Office of Government Ethics has rejected a White House attempt to block the agency’s compilation of federal ethics rules waivers granted to officials hired into the Trump administration from corporations and lobbying firms.

The White House action, a letter to OGE Director Walter M. Shaub Jr. from Office of Management and Budget Director Mick Mulvaney, was first reported by The New York Times. The newspaper had earlier published a detailed account of lobbyists turned appointees who were granted waivers and now oversee regulations they previously had lobbied against.

With an ethics waiver, a federal official is free to act on matters that normally would trigger concerns about conflicts of interest or other ethical problems. Federal regulations say the waivers generally should be made public on request. The Obama administration routinely posted waivers online. The Trump administration has issued an unknown number and released none.

Shaub notified the White House and federal agencies in April that OGE wanted to see all ethics waivers issued by President Trump’s administration. He set June 1 as the deadline. The broad request is known as a data call.

Mulvaney notified Shaub in a letter last week that the data call “appears to raise legal questions regarding the scope of OGE’s authorities.” He said he wanted the data call put on hold until it is reviewed by the Justice Department’s Office of Legal Counsel, which advises the executive branch on constitutional questions and limits of executive power. The move could block the request for waivers indefinitely.

Shaub told the White House late Monday that his agency would continue collecting the ethics waivers. In a nine-page response, Shaub said that the OGE “declines your request to suspend its ethics authority,” adding that “public confidence in the integrity of government decisionmaking demands no less.”

Under federal regulations, OGE is supposed to oversee all waiver decisions throughout the government.

“OGE has a right to review any waiver,” said former OGE Assistant Director Stuart Gilman. Referring to the data call, he said, “It’s not like somehow or other this is a special case.”

The ethics waivers are supposed to be public documents, but the administration so far has not released them. An anti-Trump legal group, American Oversight, sued eight federal departments and agencies on Monday, arguing that ethics waivers should be released under the Freedom of Information Act. American Oversight had previously filed FOIA requests.

The Trump administration and OGE are fighting on other fronts, as well:

— OGE earlier this month announced a new certification document for Cabinet secretaries and other top-ranking appointees to show they are fulfilling the ethics agreements they signed before being confirmed by the Senate. Ethics agreements typically commit a nominee to avoid ethics violations through a blind trust, divestiture, recusal or similar action.

The document must be signed by the official. As with tax returns and other federal documents, false statements run the risk of penalties. There was no previous oversight of compliance.

— The White House has raised a conflict-of-interest question to challenge newly appointed special counsel Robert Mueller, who will oversee the FBI’s investigation of Russian interference in the 2016 election.

The issue is that other lawyers at Mueller’s former law firm represent presidential daughter Ivanka Trump; her husband, Jared Kushner; and onetime Trump campaign manager Paul Manafort. Mueller never worked for those clients, but under ethics law he still could require a waiver for his new job. It’s worth noting that while the White House suggests conflicts for Mueller, it obtained an ethics agreement for EPA Administrator Scott Pruitt. He needed it because, in his previous job as Oklahoma attorney general, he was a plaintiff in several lawsuits challenging EPA regulations.

— Last winter, Shaub used Twitter to exhort Trump into putting his hundreds of corporations into a blind trust. Trump instead put them into a revocable trust, where he can draw money from his businesses whenever he wants.

[NPR]

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