Judge Rules in Trump's Favor on
Consumer Agency Leadership
November 28, 2017
A U.S. District Court judge in Washington ruled Tuesday in favor of
President Donald Trump in his bid to install White House Budget Director
Mick Mulvaney as acting director of the Consumer Financial Protection
Judge Timothy Kelly declined to stop, on an emergency basis, the
president from making Mulvaney the acting director of the CFPB.
had argued that the law that created the agency in 2011 clearly spelled
out that she should be acting director. Her lawsuit against Mulvaney
asked the court to deny the Trump administration's claim that another
law gave the president the power to name an acting director.
In doing so, Kelly ruled against Leandra English, the CFPB's deputy
director. English had requested an emergency restraining order to stop
Mulvaney from becoming acting director, claiming the position was
Mulvaney is a former small-business owner and congressman who once
called the agency a "sick, sad" joke that should be abolished.
"This agency will stay open. Rumors that I'm going to set the place on
fire or blow it up or lock the doors are completely false," he told
reporters on Monday. "I am a member of the executive branch of
government. We intend to execute the laws of the United States."
The battle over the Consumer Financial Protection Bureau boiled over
Former Director Richard Cordray, criticized by conservative Republicans
and business interests in Washington, abruptly resigned and named
English, his chief of staff, as deputy director, meaning she would be
Trump countered by appointing Mulvaney, who opposes government
regulations on business as much as Cordray believes they are essential.
2011 law cited
The White House and bureau lawyers, in turn, said there were precedents
showing that Trump was authorized to fill temporary vacancies in federal
agencies even when another law of succession might be on the books.
The Consumer Financial Protection Bureau was founded after the global
financial crisis of 2008. Its job is to protect consumers against
predatory lending and and other questionable practices by banks, credit
card companies, lenders and debt collectors.
Republicans, including Mulvaney, have said the agency has too much power
and loads down banks with too much bureaucracy.