Overnight Finance: Directors battle over consumer agency | Second GOP senator opposes current tax plan | Trump wants changes to bill | Fed nominee heads to Tuesday hearing | Retailers expect record Cyber Monday | Congress returns to nightmare December

Two directors battle for control of consumer bureau: An unusual scene unfolded Monday at the Consumer Financial Protection Bureau (CFPB) as two officials claiming to be the rightful acting director went to work, putting employees in the middle of an escalating legal dispute.

President Trump’s appointee to temporarily lead the agency, Office of Management and Budget Director Mick Mulvaney, showed up at CFPB headquarters in the morning with a large Dunkin’ Donuts bag. He set up shop in the office that had been used by Richard Cordray, who resigned as director last week, and met with senior CFPB employees. 

Meanwhile, CFPB Deputy Director Leandra English, whom Cordray appointed to be his acting successor, staked her claim to be the temporary chief of the bureau. She met with prominent Democrats on Capitol Hill to rally support for her claim.

{mosads}

In response, Mulvaney in his first memo to CFPB employees instructed them to ignore and report all official communications from English.

“I apologize for this being the very first thing you hear from me. However, under the circumstances I suppose it is necessary,” Mulvaney said in the memo. “If you’re at 1700 G Street today, please stop by the fourth floor to say hello and grab a doughnut.” I (attempt to) explain the madness here: http://bit.ly/2k5x3GC.

 

Catching up: CFPB deputy director sues Trump to block Mulvaney as interim leader: The deputy director of the Consumer Financial Protection Bureau (CFPB) on Sunday night sued President Trump in order to block Office of Management and Budget Director Mick Mulvaney from taking over as acting director of the agency.

Leandra English, who was tapped by former CFPB Director Richard Cordray to be the acting director, filed a complaint in the U.S. District Court for the District of Columbia against Trump and Mulvaney, whom the president nominated to be CFPB’s interim leader.

The office of the CFPB’s head counsel is expected to challenge her suit, claiming Trump has the authority to override the bureau’s line of succession, Reuters reported Sunday night.
English’s complaint claims that she is the rightful acting director of the CFPB, and that the court should bar Mulvaney from taking the post. English claims that the provision of the Dodd-Frank Act that lays out the CFPB’s line of succession supersedes the Federal Vacancies Act, which Trump used to nominate Mulvaney: http://bit.ly/2k2t8dB.

 

Read CFPB deputy director’s suit saying Trump can’t fill consumer agency post.

 

Top CFPB lawyer sides with Trump over Mulvaney appointment: The Consumer Financial Protection Bureau’s (CFPB) general counsel has sided with the Trump administration over its appointment of Office of Management and Budget Director Mick Mulvaney to temporarily lead the agency.

“As General Counsel for the Bureau, it is my legal opinion that the President possesses the authority to designate an Acting Director for the Bureau,” Mary McLeod wrote in a memo from Nov. 25.

“I advise all Bureau personnel to act consistently with the understanding that Director Mulvaney is the Acting Director of the CFPB,” she continued. http://bit.ly/2k5xGQu.

 

Warren to attend rally protesting Mulvaney’s CFPB appointment: Sen. Elizabeth Warren (D-Mass.) is expected to join a rally outside of the Consumer Financial Protection Bureau (CFPB) headquarters on Tuesday to protest President Trump’s appointment of budget chief Mick Mulvaney to lead the Wall Street watchdog agency.

The Democratic senator will join the Progressive Campaign Change Committee (PCCC)’s lunchtime demonstration to demand that “unfit Mick Mulvaney step aside and let acting CFPB director Leandra English do her job,” according to an advisory of the event.

Warren, as well as PCCC co-founder Adam Green, are expected to speak at the event, in which rally goers are expected to carry signs that read, “Trump & Mulvaney: Breaking the Law to Help Wall Street.”

“President Trump is breaking the law by trying to install Mick Mulvaney as the director of the agency, without Congressional approval,” the advisory read.

The Massachusetts lawmaker, a key architect of the agency, tore into Trump over the weekend in a series of tweets that accused the president of trying to destroy the consumer watchdog agency: http://bit.ly/2k45QUX.

 

Happy Monday and welcome back to Overnight Finance. I’m Sylvan Lane, and here’s your nightly guide to everything affecting your bills, bank account and bottom line.

See something I missed? Let me know at slane@digital-staging.thehill.com or tweet me @SylvanLane. And if you like your newsletter, you can subscribe to it here: http://bit.ly/1NxxW2N.

 

On tap tomorrow

• Senate Banking Committee: Hearing on the nomination of Jerome Powell to be Chairman of the Federal Reserve Board of Governors, 9:45 a.m.

 

Starting Tuesday, check out The Hill’s new daily podcasts. Journalists Alexis Simendinger and Niv Elis provide a behind-the-scenes view of the latest breaking developments, drilling deep to get to the heart of what’s happening, and why it matters to you. Listen to AM View weekday mornings, PM View weekday afternoons, and Power Politics on the weekend.

Subscribe now: Apple Podcasts | Soundcloud | Stitcher | Google Play | TuneIn

 

Tax time… Montana Republican is second to oppose current Senate tax bill: Sen. Steve Daines (R-Mont.) on Monday became the second GOP senator to oppose the upper chamber’s tax bill in its current form, raising concerns it does more to help corporations than other types of businesses.

“Sen. Daines has concerns with how the tax bill looks at main street versus large corporations,” an aide to the Montana Republican said. “The Senator wants changes to the tax cut bill that ensure main street businesses are not put at a competitive disadvantage against large corporations.”

The aide added that while Daines is currently a no on the measure, he “remains optimistic and is continuing to work with colleagues.”

Daines joins Sen. Ron Johnson (R-Wis.) in rejecting the current version of the bill.
The two senators are pushing for lawmakers to do more to help “pass-through” businesses whose income is taxed through the individual tax code. Pass-throughs can take the form of sole proprietorships and partnerships and include many small businesses. The Hill’s Naomi Jagoda breaks it down: http://bit.ly/2k8kXwF.

 

But supporters picked up an important yes vote: Sen. Rand Paul (R-Ky.) said on Monday that he will vote for the Senate GOP tax plan and urged his colleagues to “step up” and back the measure.

“This tax bill is a true test for my colleagues. I’m not getting everything I want — far from it. … I’ve fought for and received major changes for the better — and I plan to vote for this bill as it stands right now,” Paul wrote in a Fox News op-ed.

He added that he urged his colleagues to support the bill and “I urge you, their constituents, to make sure they hear from you.” http://bit.ly/2k49ZIv.

 

The Hill’s Whip List: Where Republicans stand on the Senate tax bill

 

Trump also wants ‘a few changes’ to plan: President Trump on Monday appeared to call for changes to the Republican tax plan even as he claimed it has “great support.”

Trump tweeted that he wants “just a few changes” that would help “the middle class and job producers,” as well as small businesses that are taxed through the code for individuals.

“The Tax Cut Bill is coming along very well, great support,” the president wrote. “With just a few changes, some mathematical, the middle class and job producers can get even more in actual dollars and savings and the pass through provision becomes simpler and really works well!”

The specific changes Trump wants, however, are unclear.
He tweeted just hours before he’s expected to meet at the White House with top Republican tax writers in the Senate.

GOP leaders are aiming to advance the tax bill in the upper chamber this week in a race to get a bill on Trump’s desk by year’s end. House Republicans passed their version of the plan before Thanksgiving. The Hill’s Jordan Fabian reports: http://bit.ly/2k5Qzms.

 

CBO: Senate tax bill would hurt poor: The Congressional Budget Office (CBO) found that the proposed Senate tax legislation would hurt Americans in the lowest income brackets if passed, The Washington Post reported late Sunday.

The bill would negatively impact individuals who make less than $30,000 per year by 2019, the CBO said, while most of those making under $75,000 would be negatively affected by 2027.

The update from the nonpartisan CBO comes as the Senate pushes its version of tax-reform legislation, which reportedly could see a vote as early as Thursday: http://bit.ly/2k45RZ1.

 

Poll: Majority of small businesses oppose GOP tax bill: A majority of small businesses in a new survey opposes the GOP tax plan.

A Public Policy Polling poll, released by Businesses for Responsible Tax Reform, a group opposed to the GOP tax bills, finds 51 percent of small businesses are against the plan. About one-third, 34 percent, support the GOP tax plan.

Slightly more than 50 percent of the small business owners surveyed think the GOP tax plan supports large corporations over small businesses.

A majority of small business owners also said the plan will benefit wealthy corporations the most.

The survey was conducted from Nov. 17 to 18 by the Democratic firm. It included responses from 794 small business owners: http://bit.ly/2k75c8T.

 

Cheers! Jose Andres offers free drink to consumer agency employees: Celebrity chef José Andrés on Monday offered a free drink at any of his Washington, D.C.-area restaurants to employees at the Consumer Financial Protection Bureau (CFPB) amid an ongoing dispute over who is in charge of the agency.

Former CPFB Director Richard Cordray resigned Friday night, but first tapped Leandra English to serve as acting director.

President Trump, however, nominated Mick Mulvaney, director of the Office of Management and Budget, to be the CFPB’s acting director, claiming he had the power to do so under the Federal Vacancies Reform Act of 1998.

English sued Trump and Mulvaney in federal court on Sunday night to block Mulvaney, who has previously called the agency “a sick, sad joke” with no real reason to exist.

Andrés, who has engaged in legal battle with Trump himself in the past, offered a free beverage to those at the CFPB who may not know who’s in charge: http://bit.ly/2AdYZhS.

 

Congress returns to nightmare December: Lawmakers are bracing for chaos in December as they plunge into several high-stakes legislative fights.

Both chambers are expected to be in session for roughly 15 days before leaving town until January, but the looming battles could push their exit date closer to Christmas.

Republicans want to get a key agenda item, tax reform, to President Trump’s desk by the end of the year.

That would be a daunting task even under the best of circumstances — but Republicans are also facing a Dec. 8 deadline to avoid a government shutdown, with fights over immigration and health care also crowding the agenda.

Sen. Lindsey Graham (R-S.C.) said the deadlines could be just what Republicans need to get things accomplished.

“I think that’s maybe the only way we can get it done,” he told The Hill. “We’re the ultimate do-your-homework-at-the-last-minute crowd.” 

Here’s what to watch for as Congress prepares for an end-of-the-year sprint from The Hill’s Jordain Carney: http://bit.ly/2k8o5sp.

 

Fed nominee Powell to pledge balance on regulatory relief, Dodd-Frank: Federal Reserve Chairman nominee Jerome Powell will tell lawmakers Tuesday that he’ll aim to strike a balance between preserving key financial regulations and reducing the burden they place on smaller firms.

Powell, a Fed governor, will appear before the Senate Banking Committee on Tuesday morning for a hearing on his nomination. His prepared testimony before the panel, released Monday, reflects the moderate stance Powell, a Republican who’s favored loose monetary policy and slight rollbacks to financial rules, is expected to bring to the Fed.

“We must help ensure that our financial system remains both stable and efficient. Our financial system is without doubt far stronger and more resilient than it was a decade ago,” the testimony reads.

Powell will pledge that the Fed will “continue to consider appropriate ways to ease regulatory burdens while preserving core reforms” so “banks can provide the credit to families and businesses necessary to sustain a prosperous economy.”

Powell will also say the bank “must be clear and transparent about the principles that are driving our decisions and about the expectations we have for the institutions we regulate.” http://bit.ly/2k8pEXj.

 

Retailers expecting record Cyber Monday sales: U.S. consumers are expected to set a record on Cyber Monday, with online purchases generating as much as $6.6 billion, a 16.5 percent increase over last year, according to Adobe Digital Insights.

For the first time, web traffic on smartphones and tablets is expected to be higher than for desktops, with 54 percent using handheld devices and 46 percent using computers, according to Adobe.

In total, Adobe is projecting online sales in the U.S. to surpass $100 billion for the 2017 holiday season: http://bit.ly/2k5uWCA.

 

Write us with tips, suggestions and news: slane@digital-staging.thehill.com, vneedham@digital-staging.thehill.com, njagoda@digital-staging.thehill.com and nelis@digital-staging.thehill.com. Follow us on Twitter: @SylvanLane,  @VickofTheHill, @NJagoda and @NivElis