Published: Sat, January 13, 2018
World | By Paul Elliott

Court rules in favor of Trump over fate of consumer…

Court rules in favor of Trump over fate of consumer…

The deputy director, Leandra English, has challenged Mulvaney's right to lead the consumer watchdog bureau, citing her endorsement by former CFPB Director Richard Cordray, an appointee of the Obama administration who stepped down in November.

Kelly also refuted English's claim that Trump couldn't appoint someone who was already heading another executive branch, stressing that Mulvaney will only head the CFPB until Trump has appointed someone else.

Mulvaney was appointed acting director under the Federal Vacancies Reform Act, which allows the president to name a now serving Senate-confirmed official as acting director for a set period of time or until a permanent director is confirmed. He also wrote that there was nothing in Dodd-Frank that barred the head of OMB from also serving as acting director of the CFPB. But since he took over the agency, Mulvaney has been appeared far more in charge of the bureau than English. 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.

Outside experts have continued to say English's case is weak, indicating that the longer Mulvaney remains in control, the less likely a court will be to reverse the earlier decision.

"This is the beginning, not the end, of a legal journey", said Ed Mierzwinski, federal consumer program director at the nonprofit U.S. Public Interest Research Group, which was among several consumer groups that filed briefs supporting English's injunction request.

The restraining order decision could not be appealed, so English's attorney, Deepak Gupta, filed for a preliminary injunction. "Clearly the White House is in the lead here because they won in the lower court but that could change very quickly on appeal".

"Now that Judge Kelly has ruled twice that President Trump is the only person allowed to name the new head of CFPB, it is time for the President's political opponents to stop their legal shenanigans", Manning said in a statement.

A spokeswoman for Mulvaney did not immediately respond to a request for comment.

"Because the court has determined that English is not likely to succeed on the merits, the balance of the equities would necessarily weigh against granting her an injunction", Kelly said in his opinion. "Mr. Mulvaney's appointment undermines the Bureau's independence and threatens its mission to protect American consumers", Gupta said.

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