CFPB deputy files appeal in battle to unseat Mulvaney

Reuters

Kelly came to the same conclusion Wednesday, denying English's request for a preliminary injunction. "The president looks forward to acting director Mulvaney's continued work on behalf of American consumers".

The financial industry has long complained the CFPB was too aggressive in its rulewriting and enforcement and that its single director enjoyed too much power. "Such authority appears to lack any precedent, even among other independent agencies", Kelly wrote. The administration said that law allowed Trump to appoint an official who already had been confirmed by the Senate in another capacity to also serve as the bureau's acting director. The ruling leaves in place the status quo, with Mulvaney - also serving as director of the Office of Management and Budget - working three days a week at the CFPB. That same day, he named Plaintiff Leandra English the CFPB's Deputy Director, in an apparent attempt to select his successor.

English claims that, by operation of the Dodd-Frank Act, she-and only she-is now entitled to be the acting Director of the CFPB.

The decision further reasoned that removing Mulvaney through a preliminary injunction would fail to "pay particular regard for the public consequences" and potential chaos that such an action could bring to the agency and the public's expectations for the CFPB. 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.

Cordray announced on November 24 that he would step down effective midnight; he has since announced that he is running for governor of Ohio.


This case concerns whether the President is authorized to name an acting Director of the Consumer Financial Protection Bureau ("CFPB") or whether his choice must yield to the ascension of the Deputy Director, who was installed in that office by the outgoing Director in the hours before he resigned.

This is the second time Kelly ruled has against English, who sought an emergency restraining order against Mulvaney to keep him from taking over the agency. Kelly heard almost two hours of arguments on the injunction December 22.

English's attorney, Deepak Gupta, previously indicated in court that they would appeal if they lost in the district court.

Gupta said he and English were disappointed in the decision, which hinged on which of two federal laws governed succession at the bureau.

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