NEW YORK-A federal judge ruled late Wednesday in favour of President Donald Trump and the White House over the control of the national financial watchdog agency, the Consumer Financial Protection Bureau. In that first ruling last month, Kelly, a Trump appointee who took the bench past year, expressed skepticism about whether English would prevail in her case. That request had been made by Leandra English, who was appointed acting head of the Bureau by former CFPB Director Richard Cordray after he announced his retirement in November 2017.
Kelly denied English's request for a preliminary injunction that would undo Mulvaney's appointment and block Trump from appointing anyone else. Other structural features meant to protect that independence - such as the fact that the CFPB receives funding through the Federal Reserve instead of Congress, and the limits on the president's ability to remove the director - remained in place, the judge wrote, and Mulvaney's appointment was by definition temporary. But he had previously indicated English would appeal, saying that "I think everyone understands this court is not the final stop, this judge does not have the final word on what happens in this controversy". English emailed staff with directives, while Mulvaney showed up with an armful of donuts and an urgent memo.
Mulvaney has vowed to move the CFPB away from its agenda under Democratic President Barack Obama.
"There is an urgent public need for clarity", wrote Deepak Gupta, English's attorney, in the filing. English then filed the motion for a preliminary injunction to block Mulvaney's appointment, and Kelly heard arguments on December 22.
Gupta said he and English were disappointed in the decision, which hinged on which of two federal laws governed succession at the bureau.
Ryan Giggs interviewed for Wales job
However, doubts remain over whether he would want to work with Coleman's former assistant Roberts, who previously gave his support to Giggs.
Kelly noted in his decision that both sides urged a quick resolution to the uncertainty about the bureau's leadership and said removing Mulvaney would not accomplish that.
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. "Clearly the White House is in the lead here because they won in the lower court but that could change very quickly on appeal".
Department of Justice spokeswoman Lauren Ehrsam told Law360, "We are pleased the court vindicated the President's authority to appoint Mick Mulvaney as Acting Director of CFPB, finding that Ms".
Kate Berry covers the Consumer Financial Protection Bureau for American Banker.