Judge Backs Mulvaney as CFPB Acting Director

Mick Mulvaney. Credit Gage Skidmore via Wikimedia Commons

In a second victory for the White House over the battle for control of the Consumer Financial Protection Bureau, a federal judge denied a preliminary injunction request that would have removed Acting Director Mick Mulvaney from his post.

English - who was appointed to lead the CFPB by predecessor Richard Cordray - got into a perplexing dilemma after President Trump ignored Cordray's orders and tapped Mulvaney as the acting financial protection czar, even though he was already heading the government's Management and Budget Office.

Kelly noted in his Wednesday night ruling that Trump's executive authority could "override" the order of succession laid out in the Dodd-Frank Act, the Obama-era federal law that founded the CFPB. President Donald Trump selected Mulvaney as the acting director a year ago citing the Federal Vacancies Reform Act and sparking a debate over which legal precedent determines the regulator's line of succession. "Such authority appears to lack any precedent among other independent agencies". "As an initial matter, the court must determine whether the FVRA-independent of whether it is displaced by the Deputy Director provision of the Dodd-Frank Act-authorizes the president's appointment of the CFPB's acting director on its own terms".

"The moving party must meet a higher standard than in the ordinary case by showing clearly that he or she is entitled to relief or that extreme or very serious damage will result from the denial of the injunction", Kelly said.

English asked Kelly to undo Trump's appointment of Mulvaney, but he ruled that the president was within his rights as chief executive.

On Nov. 26, English filed her lawsuit challenging Mulvaney's appointment in the US District Court for the District of Columbia.

Kelly came to the same conclusion Wednesday, denying English's request for a preliminary injunction. "English had not shown a substantial likelihood of success on the merits, and is unlikely to suffer irreparable harm". The central question is whether the Federal Vacancies Reform Act, the law President Trump used to appoint Mulvaney, is superceded by the Dodd-Frank Act, which says the deputy director is the rightful acting head of the CFPB once a director leaves. In his written opinion, Judge Kelly said, "The president has designated Mulvaney the CFPB's acting director, the CFPB has recognized him as the acting director, and it is operating with him as the acting director".

But the same day that Cordray announced he was leaving, the White House announced that Trump had appointed Mulvaney to serve as the acting director under the Federal Vacancies Reform Act, which gives the president the power to fill open seats in federal agencies.

"Mulvaney's appointment undermines the bureau's independence and threatens its mission to protect American consumers", said Deepak Gupta, a lawyer with the firm Gupta Wessler.

Related:

Comments

Latest news

Surging Blackhawks gunning for third straight win vs. Wild
Goalie Anton Forsberg is starting his second straight game for the Hawks after sitting the previous four in favor of Jeff Glass. For the Wild to be down just one goal after one period to the Blackhawks was a surprise - or as Boudreau put it, "amazing".

China to invest billions of dollars in ally Cambodia
Communities in the lower Mekong countries have reported depleted fish stocks in recent years and are blaming the dams. China is increasing its investment along the river through building dams and a navigation channel.

Europe not underestimating Asia ahead of EurAsia Cup
I saw Davis (Love III) at a range somewhere and I kind of told him that I was captaining. Team Asia have only seven in Top-100 for the third edition of the EurAsia Cup.

Indian cabinet clears 100 pct FDI in single brand retail
These are meant to liberalise and simplify the FDI policy so as to provide ease of doing business in the country. Now 100% FDI under automatic route for Single Brand Retail Trading and Construction Development will be allowed.

British champ Sunderland out of Dakar Rally due to back pain
Withdrawal of Aravind means Hero MotoSports' CS Santosh is the only Indian rider left in the rider's roaster to finish the rally. Dakar debutant Oriol Mena, also competing for Hero MotoSports Team, finished 11th, his second top-15 stage finish.

Other news