An effort by Consumer Financial Protection Bureau Deputy Director Leandra English to prevent Mick Mulvaney from heading the consumer watchdog has failed after a federal judge denied a preliminary injunction she had sought, Reuters reported.
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.
Kelly denied English's request for a preliminary injunction that would undo Mulvaney's appointment and block Trump from appointing anyone else. English served as the principal deputy chief of staff at the Office of Personnel Management, chief of staff and senior advisor to the deputy director for management at the Office of Management and Budget, and as a member of the CFPB implementation team at the Department of the Treasury. Ms.
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When President Trump then appointed outspoken CFPB critic Mulvaney to head the organization, the stage was set for turmoil and controversy in the months to come. "Granting English an injunction would not bring about more clarity; it would only serve to muddy the waters", Kelly wrote. The CFPB's previous Director, Richard Cordray, resigned effective at midnight on the day after Thanksgiving: Friday, November 24, 2017.
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 follows a denial of English's request for a temporary restraining order in November. President Trump's case cites the 1998 Federal Vacancies Reform Act to support the administration's position.
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A lawyer for English, Deepak Gupta, expressed disappointment at Kelly's decision. English then filed the motion for a preliminary injunction to block Mulvaney's appointment, and Kelly heard arguments on December 22.
"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. "Mr. Mulvaney's appointment undermines the Bureau's independence and threatens its mission to protect American consumers", Gupta said. "English had not shown a substantial likelihood of success on the merits, and is unlikely to suffer irreparable harm".
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