clear
Wednesday December 13th, 2017 2:18AM

Trump pick is winner, for now, in fight over consumer agency

By The Associated Press
Related Articles
  Contact Editor

WASHINGTON (AP) — President Donald Trump scored a victory Tuesday when a federal judge refused to block the president's choice to temporarily run the nation's top consumer financial watchdog and, for the moment, ended a two-way battle for leadership of the agency.

Judge Timothy Kelly declined to stop the president from putting Mick Mulvaney in place as the acting director of the CFPB. In doing so, Kelly ruled against Leandra English, the CFPB's deputy director, who had requested an emergency restraining order to stop Mulvaney from becoming the acting director.

Both Mulvaney and English claimed to be the rightful acting director, with each citing different federal laws. The leadership crisis developed over the weekend after the CFPB's permanent director, Richard Cordray, resigned and appointed English as his successor. Shortly afterward, the White House announced that Mulvaney, currently budget director, would take over the CFPB on an interim basis.

The judge's ruling Tuesday is not the final decision in the case. But in making his decision, the judge said that English had not shown a substantial likelihood that she eventually would succeed on the merits of her case. The judge's decision is not immediately appealable.

Kelly was nominated by President Trump and was confirmed by the Senate in September.

The CFPB was established after the financial crisis to make sure customers are not being exploited and that banks are complying with the consumer protection laws on the books. Cordray, appointed by President Barack Obama, was criticized by congressional Republicans as being overzealous, but lauded by consumer advocates for aggressively going after banks for wrongdoing. On Monday, Mulvaney said the CFPB under a Trump administration would act differently than the agency under the Obama administration.

Lawyers for English will have to make a choice about how to proceed. After the hearing, a lawyer for English, Deepak Gupta, said he hopes to be able to move the case along quickly.

"I'm going to have to explore the options with my client, so I don't know what the next step is and I'm not going to say that right now," he said, adding options include asking the judge for a final decision on the merits of the case.

Gupta said it is not in his client's interest or the government's interest to have a "cloud of impropriety and uncertainty hanging over the bureau for any longer than is necessary."

The White House said it "applauds the court's decision," saying it provides "further support for the president's rightful authority to designate Director Mulvaney as acting director of the CFPB."

Trump's authority to install Mulvaney was backed up by Mary McLeod, the CFPB's general counsel, who wrote a memo over the weekend agreeing with the White House that Mulvaney should be recognized as acting director. The Office of Legal Counsel, which acts as a legal adviser to the president, also argued that Mulvaney, not English, was the legitimate acting director of the agency.

____

Sweet reported from New York.

  • Associated Categories: U.S. News, Associated Press (AP), AP National News, AP Online National News, Top U.S. News short headlines, Top General short headlines, AP Business, AP Business - Consumer News, AP Business - Personal Finance
© Copyright 2017 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Air Force: Several dozen criminal histories not given to FBI
The Air Force says its failure to report the criminal history of the former airman who massacred 26 people at a Texas church in early November was part of a pattern of such lapses
6:47PM ( 5 minutes ago )
The Latest: SKorea to review safety of Olympics after launch
South Korean President Moon Jae-in has told government officials to "closely review" whether the latest North Korean missile launch will affect South Korean efforts to successfully host next year's Winter Olympics in Pyeongchang
6:44PM ( 7 minutes ago )
FCC head Ajit Pai goes after Hollywood, tech companies
The head of the Federal Communications Commission is defending his plan to undo the country's net-neutrality rules by hammering the Hollywood celebrities and tech companies who have criticized it
6:42PM ( 9 minutes ago )
Associated Press (AP)
The Latest: Trump speaks to Abe after NKorea missile launch
President Donald Trump is speaking with Japanese Prime Minister Shinzo Abe after North Korea launched what the Pentagon said was an intercontinental ballistic missile
6:16PM ( 35 minutes ago )
AP EXCLUSIVE: Big contracts, no storm tarps for Puerto Rico
A newly created Florida company won more than $30 million in federal contracts to provide emergency tarps and plastic sheeting for repairs in Puerto Rico. None of it was ever delivered.
6:11PM ( 40 minutes ago )
Aspiring actress details allegations against Weinstein
An aspiring actress who is suing Harvey Weinstein under a federal sex trafficking law says the media mogul forced her to perform sex acts on him in front of a hotel room mirror
6:10PM ( 42 minutes ago )
AP National News
Retail group: Those using both online, stores spending more
A retail trade group says people who shopped both online and in stores from Thanksgiving to Cyber Monday were the biggest spenders
5:59PM ( 53 minutes ago )
EU official: Progress toward breakthrough in Brexit talks
A European Union official says EU and British negotiators are making progress toward a breakthrough in Brexit talks amid media reports that a tentative deal on a financial settlement has been found
5:29PM ( 1 hour ago )
EPA hears worries about climate in heart of coal country
The coal industry and environmentalists are squaring off at a two-day public hearing over the Trump administration's planned repeal of an Obama-era plan to limit planet-warming carbon emissions
5:14PM ( 1 hour ago )
AP Business
Who's in charge? 2 fight for control of US consumer watchdog
Dueling acting directors are fighting for control of the Consumer Financial Protection Bureau, with one selected by President Donald Trump and the other hand-picked by the outgoing director
1:26AM ( 17 hours ago )
2 fight for control of consumer watchdog; judge yet to rule
The two dueling acting directors of the nation's top financial watchdog agency are jostling to take control using emails, tweets and doughnuts as the fight moves to a district court
10:59PM ( 19 hours ago )
The Latest: No ruling yet on who's leader of watchdog agency
A federal court hearing on a lawsuit over who is rightfully the acting director of the nation's top financial watchdog agency has concluded without any ruling
7:39PM ( 23 hours ago )
AP Business - Consumer News
Top Dems pull out of Trump meeting after his Twitter attack
Congress' top Democratic leaders abruptly pulled out of a planned meeting Tuesday with President Donald Trump after he attacked them on Twitter
4:43PM ( 2 hours ago )
Tax bill advances, final Senate vote uncertain
A key Senate committee has advanced a sweeping tax package to the full Senate, handing GOP leaders a victory as they try to pass the nation's first tax overhaul in 31 years
4:22PM ( 2 hours ago )
The Latest: Trump celebrates committee passage of tax plan
The White House is celebrating the Senate Budget Committee's passage of the Republican tax plan, which will advance the sweeping tax package to the full Senate
3:16PM ( 3 hours ago )
AP Business - Personal Finance
AP source: Mullen fires Shannon, hires Gonzales, Hevesy
A person familiar with the situation tells The Associated Press that new Florida coach Dan Mullen has dismissed defensive coordinator Randy Shannon and five other assistants
6:39PM ( 12 minutes ago )
Lawmakers back bill to combat 'revenge porn'
A bipartisan group of lawmakers is introducing a bill to combat online sexual exploitation as allegations of inappropriate sexual behavior stack up against prominent members of Congress
6:37PM ( 15 minutes ago )
Libyan cleared of most serious charges in Benghazi attack
A federal jury has found a suspected Libyan militant not guilty of the most serious charges stemming from the 2012 Benghazi attacks that killed the U.S. ambassador and three other Americans
6:25PM ( 26 minutes ago )
The Latest: Moon raises concerns of US pre-emptive strike
South Korean President Moon Jae-in has raised concerns that North Korea's perfection of an intercontinental ballistic missile would let regional security "spiral out of control" and make the United States consider a pre-emptive strike against the North
6:24PM ( 28 minutes ago )
The Latest: Trump speaks to Abe after NKorea missile launch
President Donald Trump is speaking with Japanese Prime Minister Shinzo Abe after North Korea launched what the Pentagon said was an intercontinental ballistic missile
6:16PM ( 35 minutes ago )