Donald Trump secured a victory in the federal District Court in D.C., as a Judge just ruled that Mick Mulvaney can continue as Acting Director of the Consumer Financial Protection Bureau (CFPB). In that first ruling last month, Kelly, a Trump appointee who took the bench previous year, expressed skepticism about whether English would prevail in her case. Former CFPB director Richard Cordray, an Obama appointee, resigned and had given the reins to deputy director Leandra English on his way out.
Kelly came to the same conclusion Wednesday, denying English's request for a preliminary injunction. 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.
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.
English's attorney, Deepak Gupta, promptly blasted Kelly's ruling and expressed concern over Mulvaney's intentions to drastically curtail the bureau's authority, noting his history of siding with big banks over consumers. English said Cordray had appointed her to be the interim head before he left.
The decision further reasoned that removing Mulvaney through a preliminary injunction would fail to "pay particular regard for the public consequences" and potential chaos that such an action could bring to the agency and the public's expectations for the CFPB. English then filed the motion for a preliminary injunction to block Mulvaney's appointment, and Kelly heard arguments on December 22. He said in a statement to BuzzFeed News that they were disappointed with Kelly's decision.
Cordray announced on November 24 that he would step down effective midnight; he has since announced that he is running for governor of Ohio. He did not say if or when they would appeal.
A spokeswoman for Mulvaney did not immediately respond to a request for comment.
Trump has yet to name a permanent CFPB director, and Mulvaney has said he expects to be in the interim role for up to seven months. "English had not shown a substantial likelihood of success on the merits, and is unlikely to suffer irreparable harm".
Kate Berry covers the Consumer Financial Protection Bureau for American Banker.