The acting chief of the Consumer Financial Protection Bureau (CFPB) said Tuesday that an official under fire for blog posts dismissing racism will remain in charge of the agency’s lending discrimination cases.

Acting CFPB Director Mick Mulvaney told bureau employees in an email obtained by The Hill that Eric Blankenstein would not be fired or reassigned despite a growing revolt over his leadership of the bureau’s office of supervision, enforcement, and fair lending.

“I recognize that this is not the result that some of you may have wanted. But I stand by my decision and will proceed accordingly,” Mulvaney wrote in a Tuesday evening email. 

Blankenstein, director of CFPB's supervision division, admitted to writing anonymous blog posts in 2004 calling most hate crimes hoaxes and questioning whether using the n-word was inherently racist. He expressed regret for his language in a Monday email to CFPB employees and insisted he was not racist.

Mulvaney, who took control of the CFPB in November, hired Blankenstein to the bureau in December and elevated him to a senior position in February. Blankenstein currently oversees the CFPB’s expansive supervision and prosecution of banks and lenders suspected of wrongdoing.

Mulvaney in February also proposed stripping the enforcement powers from the CFPB’s office of fair lending and transferring them to Blankenstein’s division.

Read more in The Hill.