WASHINGTON – A federal judge has refused to block the appointment of Mick Mulvaney as interim director of the Consumer Financial Protection Bureau, siding with the Trump administration in the fight over who will lead the agency.
Judge Timothy Kelly, who was appointed by President Trump in September, sided with the administration and dismissed a lawsuit filed by Leandra English, the deputy director of the CFPB who was seeking to block Mulvaney’s appointment.
"Denying the president's authority to appoint Mr. Mulvaney raises significant constitutional questions," U.S. District Kelly wrote in his opinion.
“Nothing in the statutes prevents Mr. Mulvaney from holding both of these positions,” Kelly added, referring to Mulvaney’s position as director of the U.S. Office of Management and Budget.
As CUToday.info reported here, staff at the CFPB have spent the first two days of the week in a game of “Who’s the Boss?” with both Mulvaney and English showing up at the agency’s offices and claiming to be the acting director.
The confusing situation began last week when the CFPB’s former director, Richard Cordray, appointed English as deputy director – and then contended that with his resignation English would become acting director until the president nominated and the Senate approved a replacement.
But Trump on Saturday named Mulvaney, a long-time critic of the CFPB, to lead the agency. Analysts have suggested Mulvaney will eventually return to his OMB position and name someone else as acting director or as a deputy.
English had argued in her lawsuit that the Dodd-Frank Wall Street Reform Act makes clear how succession works when it comes to the agency’s leadership succession, and further argued that allowing Mulvaney to hold the post would compromise the Bureau's independence.
The judge dismissed those arguments.
With Mulvaney in place, it appears a 30-day freeze he announced on hiring and the issuance of new rules will remain. Both CUNA and NAFCU have praised Mulvaney’s initial moves.
CUNA responded to Kelly's ruling.
“CUNA has long pushed for a bipartisan commission to lead the CFPB, and the questions we’ve seen raised over the last few days only reinforce that need,” said CUNA Chief Advocacy Officer Ryan Donovan. “In the meantime, the president has appointed Mick Mulvaney acting director of the CFPB, who we have already reached out to, and we look forward to working with the Bureau going forward on ways it can bring much-needed regulatory relief to credit unions.”