Judge's Ruling Keeps Mulvaney in Place at CFPB

Judge's Ruling Keeps Mulvaney in Place at CFPB

A judge for the US District Court for the District of Columbia [official website] on Wednesday denied a motion for preliminary injunction [text, PDF] brought by Consumer Financial Protection Bureau (CFPB) [official website] Deputy Director Leandra English to remove Mick Mulvaney as interim director.

English's argument hinges upon the notion that the CFPB was meant to be an independent agency, and cites the 2010 Dodd-Frank Act, which created the agency.

In denying the request for an injunction, Kelly found that the Dodd-Frank language did not override the president's powers under the FVRA and thus that English's claim was not likely to be granted.

Kelly also refuted English's claim that Trump couldn't appoint someone who was already heading another executive branch, stressing that Mulvaney will only head the CFPB until Trump has appointed someone else.

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The CFPB deputy's case is not the only one pending on the matter. "Acting Director Mulvaney has been working hard to restore the credibility of this once rogue and politically partisan agency and this work must continue without further obstruction". English has served in number of senior leadership roles at the CFPB, including deputy chief operating officer, acting chief of staff, and deputy chief of staff. The CFPB's previous Director, Richard Cordray, resigned effective at midnight on the day after Thanksgiving: Friday, November 24, 2017. Under a succession order in the Dodd-Frank Act, English would become acting director once Cordray's resignation took effect. With both Mulvaney and English arguing that they were the legitimate Acting Director of the Bureau, English filed a lawsuit seeking a temporary restraining order. The oral arguments on that case were heard on Friday morning.

A lawyer for English, Deepak Gupta, expressed disappointment at Kelly's decision.

"Now that Judge Kelly has ruled twice that President Trump is the only person allowed to name the new head of CFPB, it is time for the President's political opponents to stop their legal shenanigans", Manning said in a statement. "English had not shown a substantial likelihood of success on the merits, and is unlikely to suffer irreparable harm". "Mr. Mulvaney's appointment undermines the Bureau's independence and threatens its mission to protect American consumers".

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