Temporary restraining order to stop Trump's pick for CFPB is denied

  • Temporary restraining order to stop Trump's pick for CFPB is denied

Temporary restraining order to stop Trump's pick for CFPB is denied

In a ruling from the bench Tuesday afternoon, Judge Timothy Kelly - a Trump appointee - declined to stop on an emergency basis the president from putting in place Mick Mulvaney, now the White House's budget director.

A federal judge has ruled in favor of President Trump in his effort to appoint the acting head of nation's top financial watchdog agency, the Consumer Financial Protection Bureau.

Leandra English, who was elevated to deputy director of the bureau late last week by former Richard Cordray upon his resignation, sent staff an e-mail offering Thanksgiving wishes - hours after asking a judge to block Mulvaney from taking over. Both Mulvaney and English assumed the position Monday morning, with each reaching out to their inherited staff via email, signing them as "acting director".

"One thing I would say is this is a serious legal matter that should be weighed carefully", Cordray said. Gupta said that English had received emails from Mulvaney reprimanding her - he did not provide details about those messages - and that there was concern that her job could be in jeopardy, even though there hadn't been any direct threat of firing.

Despite being made into a federal court case, the issue may soon be moot.

On his first day in the office, Mulvaney brought doughnuts for the agency's 1,600 employees and announced a 30-day freeze on the issuance of new rules and hiring.

The White House defended its decision Sunday night, despite English's court filing. He once called the agency a "joke" and said he wished it didn't exist.

"I believe the language of the Dodd-Frank law is clear and that Leandra English, not Mr. Mulvaney, is the legal Acting Director of the agency", Warren wrote.

Cordray, meanwhile, hasn't said much about the dispute publicly.

"Yesterday, I spent time at the CFPB, I reviewed transition materials, and I met with members of Congress to lay out my plans for ensuring that the consumer bureau continues to fight for working families", English said in her statement.

For now, Mulvaney is acting director and English remains deputy director. The bureau has always been criticized by Republicans and the banking industry as an agency with too much power and too little accountability.

The administration's case in the acting director controversy rests on the Federal Vacancies Reform Act, which gives the president authority to appoint temporary department heads while their permanent nominees are approved by the Senate. The deputy director, according to the Dodd-Frank law, becomes the acting director in the absence or unavailability of a director.

President Trump will soon nominate someone to take over as the full-time director, and English will probably be asked to step down as the administration seeks to change the direction of the bureau.