Consumer Financial Protection Bureau Deputy Director Leandra English is suing the Trump administration to block the appointment of Office of Management and Budget (OMB) Director Mick Mulvaney as interim director following Richard Cordray's resignation. For the reasons explained below, including that English has not demonstrated a likelihood of success on the merits or shown that she will suffer irreparable injury absent injunctive relief, her request for a preliminary injunction is DENIED.
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. She seeks a preliminary injunction that would restrain the President from appointing an acting Director other than her, require the President to withdraw Mulvaney's appointment, and prohibit Mulvaney from serving as acting Director.
"Under English's reading, the CFPB's Director has unchecked authority to decide who will inherit the potent regulatory and enforcement powers of that office, as well as the privilege of insulation from direct presidential control", Kelly wrote.
Kate Berry covers the Consumer Financial Protection Bureau for American Banker.
Gupta did not say if the ruling would be appealed and did not respond to a request for additional comment.
"I certainly hope we see a nominee soon but I wouldn't bet on it", he said.
The CFPB was created in the aftermath of the 2008 financial crisis.
And McWatters was the subject of a critical article this week by the conservative Breitbart News Network website, which said former President Obama "thought so highly of McWatters he nominated him in 2016 to head up the Export-Import Bank, the poster child of crony capitalism reviled by virtually every conservative leader". Mulvaney, when he was a member of Congress, expressed similar opinions about the bureau, which made consumer advocates fearful that he would undo much of what Cordray accomplished during his tenure.
The dispute began November 24 when Richard Cordray, a Democrat, stepped down as bureau director. English has served in number of senior leadership roles at the CFPB, including deputy chief operating officer, acting chief of staff, and deputy chief of staff. But since he took over the agency, Mulvaney has been appeared far more in charge of the bureau than English.
Kelly also rejected English's argument that Trump's appointment of a sitting executive branch official as the acting head of the bureau undermined its independence.