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Federal court sides with Trump admin over CFPB posting

(National SentinelJudiciary: A federal court on Tuesday sided with President Donald J. Trump over his appointment former budget director Mick Mulvaney to head up the Consumer Financial Protection Bureau after its outgoing director tried to name his own replacement.

Richard Cordray resigned Friday, with his last action being the installation of Leandra English, the agency’s deputy director, as his replacement.

But within hours, Trump named Muvaney, former head of the Office of Management and Budget, to lead the CFPB.

U.S. District Judge Timothy Kelly ruled against English and refused to issue a temporary restraining order that would prevent Mulvaney from taking over while allowing her to assume the role of acting director.

In a statement, the Trump administration White House said it “applauds the court’s decision, which provides further support for the president’s rightful authority to designate Director [Mick] Mulvaney as acting director of the CFPB.”

“It’s time for the Democrats to stop enabling this brazen political stunt by a rogue employee and allow Acting Director Mulvaney to continue the Bureau’s smooth transition into an agency that truly serves to help consumers,” the White House said.

 

Both Mulvaney and English say they are the legal acting director of the powerful agency. The 2010 Dodd-Frank legislation states that in the director’s absence, the deputy director becomes acting director.

But in naming Mulvaney, the White House, which was supported by the Justice Department’s Office of Legal Counsel and the CFPB’s general counsel, relied on the older Federal Vacancies Reform Act, which allows for presidential appointment of an acting director.

White House, backed by the Justice Department’s Office of Legal Counsel and the CFPB’s general counsel, point to the older Federal Vacancies Reform Act as allowing for presidential appointment of an acting director.

English was represented in court by former CFPB employee Deepak Gupta, who has become a leading anti-Trump litigator.

Following Kelly’s ruling, Gupta told reporters he was not sure what the next legal move would be and that he would be consulting with English regarding whether or not to file an appeal.

However, he said “this judge does not have the final word on what happens in this controversy and I think he understands that.”

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  1. Gingrich says Trump ‘decisively reining in the Left’ — will the CFPB be next domino to fall? – The National Sentinel

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