Judge Backs Trump's Man As Acting Director Of CFPB

Judge Leaves Mick Mulvaney In Place As Acting Director Of CFPB

A federal court has denied a request for a temporary restraining order sought by an Obama-era appointee seeking to block the Trump administration from assuming control of the Consumer Financial Protection Bureau.

In his bench ruling, Judge Timothy Kelly said he would not stop Mick Mulvaney, now White House budget director, from taking the job.

US District Judge Timothy Kelly, announcing his decision from the bench on Tuesday afternoon, said that Leandra English - the CFPB official suing Trump and Mulvaney and claiming to be the rightful acting director - had failed to show that she was likely to succeed in her lawsuit at this stage of the case.

The situation started on November 24, when Richard Cordray, the bureau's inaugural director, announced that he would be stepping down as of midnight.

Mulvaney arrived at the bureau Monday bearing doughnuts for staffers and a message that they should disregard any instructions received from English.

The result was a legal minefield.

English's legal challenge to Mulvaney's appointment is two-fold: First, she's arguing that the Dodd-Frank Act, which created the CFPB, articulated a stand-alone succession order for the bureau that should take precedence.

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Appointing Mulvaney, a "sitting White House official" and an outspoken critic of the bureau, to lead the agency would run counter to Congress's intent and explicit provisions, Gupta said.

Whoever ultimately prevails in the court fight will gain the power to guide the the bureau while the process of selecting and confirming a permanent director plays out.

The CFBP leadership fight comes as a USA appeals court in Washington has before a it a case where the fate of the agency is at stake.

White House press secretary Sarah Sanders said in a statement, "The law is clear: Director Mulvaney is the acting director of the CFPB". He is expected to dismantle much of what the bureau has done. She sent a message, telling its employees she was honored to be working with them and identified herself as acting director.

English cited the Dodd-Frank Act, which created the CFPB.

Both sides presented their arguments during an emergency hearing in U.S. District Court in Washington on Monday.

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