Judge Again Rules for Trump Administration in Fight for Control of Cfpb
WASHINGTON – A federal gauge on Tuesday refused to block the appointment of Mick Mulvaney as acting director of the Consumer Financial Protection Agency, siding with the Trump administration in the legal fight over the leadership of the consumer watchdog.
"Denying the president's authorization to appoint Mr. Mulvaney raises significant constitutional questions," U.Due south. District Guess Timothy Kelly said.
"Zippo in the statutes prevents Mr. Mulvaney from holding both of these positions," the judge said, referring to Mulvaney's existing job as the federal budget manager.
Kelly, a Trump appointee, rejected the argument in a lawsuit from Leandra English that she should be the interim leader of the consumer bureau that oversees banks, mortgage providers, credit card issuers and other financial services that affect millions of Americans.
Richard Cordray, who resigned as the consumer bureau's director on Friday, elevated English from her chore as the watchdog'south principal of staff to deputy director in an 11th-hour appointment equally he departed. Cordray said a provision of the Dodd-Frank Wall Street reform act that created the watchdog later the financial crisis would automatically brand her his successor.
President Trump, however, named Mulvaney as the watchdog's acting managing director hours later, citing dominance from a different federal police force called the Vacancies Reform Act. The movement set off two days of confusion as both English and Mulvaney claimed to exist the bureau'south acting managing director.
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After a lawsuit from English to block Mulvaney from taking over, Kelly ruled that the provisions of the law cited by Trump and Section of Justice attorneys serve as the prevailing authority in support of the president's "lawful" engagement.
Deepak Gupta, English's attorney, best-selling the courtroom "loss" in a brief statement post-obit the decision. Still, he vowed that the ruling would "not be the last reply." He signaled that the case would move forwards with a possible asking for a preliminary injunction against Trump's appointment.
A court denial at that stage would trigger a likely appeal.
At ane point during Tuesday'south court session, Gupta raised the possibility that English could face punitive action from Mulvaney for challenging his leadership of the bureau.
Kelly, however, said no direct show of such retaliation had been presented to the courtroom.
The Trump administration chop-chop declared victory over the judge's decision.
"The administration applauds the Court's determination, which provides farther support for the President'south rightful authority to designate Manager Mulvaney as Acting Director of the CFPB," the White House said in a statement.
"Information technology's time for the Democrats to stop enabling this brazen political stunt by a rogue employee and allow Interim Director Mulvaney to continue the Bureau'due south smooth transition into an agency that truly serves to help consumers."
The Consumer Bankers Association, one of several financial services providers that have criticized the consumer bureau'southward deportment, similarly welcomed the ruling.
"We expect forward to working with Acting CFPB Managing director Mick Mulvaney to bring transparent and balanced consumer protections to all customers and small businesses," CBA President and CEO Richard Chase said in a statement.
The unusual boxing for control of the consumer agency started on Fri equally Cordray concluded his six-yr tenure with the controversial leadership succession plan. On Monday, both English and Mulvaney showed up for work and claimed the mantle as interim managing director.
The dueling acting directors left the watchdog'south leadership and immediate future in doubt.
Mulvaney issued a directive this calendar week instructing staffers to consider him the interim manager. Separately, English sent the employees an e-mail about the succession changes and met with congressional Democrats who supported her claim to the watchdog's top job.
From the White Business firm's perspective, Mulvaney's installation was meant to serve every bit an immediate interruption with the Obama-era leadership, awaiting the nomination and approval of a permanent managing director.
During a Monday news conference, Mulvaney said that the consumer bureau'southward operations under Trump would be "dramatically different" than under Obama.
Referring to Trump's view of the watchdog's mission, Mulvaney said: "He wants me to become information technology back to the point where it can protect people without trampling on capitalism, without choking off the access to financial services that are so critical to then many folks."
Gupta argued, unsuccessfully, that allowing Mulvaney, a elevation White House official, to hold the mail service would compromise the bureau's independence.
However, Mulvaney insisted he would "be as independent from Donald Trump in this role" as Cordray had been from Obama.
More than:Courtroom decision delayed in Consumer Fiscal Protection Bureau leadership battle
More:Richard Cordray resigns as director of Consumer Financial Protection Agency
Source: https://www.usatoday.com/story/news/politics/2017/11/28/judge-rules-mick-mulvaney-remain-interim-headin-leadership-fight-consumer-financial-protection-burea/902173001/
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