Judge Sides with Mulvaney in CFPB Acting Director Case

Federal Judge Timothy Kelly yesterday denied Consumer Financial Protection Bureau (CFPB) Director Leandra English’s request for a preliminary injunction blocking President Donald Trump’s appointment of Mick Mulvaney, Director of the Office of Management and Budget (OMB) as acting director of the agency.

Judge Timothy Kelly ruled that English is "not likely to succeed on the merits of her claim that Dodd-Frank's Deputy Director provision displaces the President's ability to name an acting Director of the CFPB pursuant to the [Federal Vacancies Reform Act] FVRA." Kelly also found that both the Dodd-Frank Act and the FVRA should “be read harmoniously.” 

“The best reading of the two statutes is that Dodd-Frank requires that the Deputy Director ‘shall’ serve as acting Director, but that under the FVRA the President ‘may’ override that default rule,” the court said.

Judge Kelly had denied English’s claim once before. She can appeal the ruling.