WASHINGTON–A federal judge has again ruled in favor of the Trump Administration and against a CFPB employee who has challenged who should be leading the agency.
U.S. District Judge Timothy J. Kelly has rejected a request by the CFPB’s Leandra English’s for a temporary restraining order that would prevent White House budget director Mick Mulvaney from serving as the CFPB’s acting director.
In his 46-page ruling, Kelly wrote, “English has not demonstrated a likelihood of success on the merits or shown that she will suffer irreparable injury absent injunctive relief.”
The court challenge follows the appointment by President Trump of Mulvaney—who also heads the Office of Management and Budget–to a temporary post leading the Bureau. The vacancy was created when Richard Cordray resigned the position after having previously named his chief of staff, English, as the acting director. Cordray’s assumption was that English would then take over leadership of the CFPB.
But Trump instead named Mulvaney for the post, creating a situation for a short period where there were dueling directors vying for control, as CUToday.info reported here.
English filed suit, arguing the Dodd-Frank Act, which established the CFPB, is very clear in its language outlining a succession plan that calls for the deputy director to take over until a White House nominee is confirmed by the Senate. English further argued that Mulvaney cannot simultaneously hold the two positions.
The administration responded by arguing that the president has full authority to name a successor, citing the 1998 Federal Vacancies Reform Act.
Earlier, English lost a ruling by Judge Kelly, who is a Trump appointee, over the succession process, as reported here.
Both credit union trade groups have supported the president on the issue and the appointment of Mulvaney.
“We are disappointed in today’s decision,” Deepak Gupta, English’s attorney, said in a statement. "The law is clear: President Trump may not circumvent the Senate confirmation process by installing his White House budget director to run thee CFPB part time. Mr. Mulvaney’s appointment undermines the Bureau’s independence and threatens its mission to protect American consumers.”
It is not known whether English plans to further appeal the decision.
Mulvaney, a critic of the CFPB, has over the past two months looked to loosen controls put in place by the agency.