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COMPLIANCE

Judge Again Rules in Favor of Trump in

Battle for Control of CFPB

By Auto Dealer Monthly

A federal judge once again sided with the
White House in the battle for control of the
Consumer Financial Protection Bureau,
denying last Wednesday a request by CFPB
Deputy Director Leandra English for a
preliminary injunction to remove President
Donald Trump’s appointee as acting head of
the agency.
The ruling comes less than 50 days after
U.S. District Judge Timothy J. Kelly denied
English’s request for a restraining order
to block President Trump’s appointment
of White House Budget Director Mick
Mulvaney as acting director. It now sets the “The law is clear: President Trump may “That was our intent, to strip this away
stage for an appeal by English, who has said not circumvent the Senate confirmation from the politics of the moment, to give
she is the rightful acting director. process by installing his White House consumers the sense of confidence that
budget director to run the CFPB part time,” there was one place here — when it came
“The Court finds that English is not likely to Gupta wrote. “Mr. Mulvaney’s appointment to their financial services — [where] there
succeed on the merits of her claims, nor is undermines the bureau’s independence and would be people watching out for them,
she likely to suffer irreparable harm absent threatens its mission to protect American regardless of political party or partisanship,”
the injunctive relief sought,” Judge Kelly consumers.” said former Sen. Chris Dodd during media
wrote in his 46-page decision. “Moreover, call on Nov. 30.
the balance of the equities and the public When Cordray formally resigned as CFPB
interest also weigh against granting the director on Nov. 24, he elevated English, his Dodd joined former Rep. Barney Frank
relief. Therefore, English has not met the former chief of staff, to deputy director. The and more than 30 current and former
exacting standard to obtain a preliminary move established her as acting director until members of Congress in writing one of
injunction.” the Senate confirms Trump’s permanent five separate amicus briefs in support of
appointee. English’s position. In Wednesday’s ruling,
Judge Kelly originally denied English’s however, Judge Kelly said that argument
request for a temporary restraining order Hours after Cordray’s announcement, is completely without support in the text
to block Mulvaney’s appointment on Nov. Trump appointed Mulvaney as acting of the Dodd-Frank, adding that the court
28. The ruling, however, pertained to the director, citing his authority through the “declines to create such a restriction out of
restraining order and not the merits of the Federal Vacancies Reform Act (FVRA). whole cloth.”
case, with English’s attorney Deepak Gupta English filed suit two days later to block
hinting that Kelly’s ruling “would not be the the appointment, arguing that she was the “Simply put, Dodd-Frank does not prohibit
final answer.” rightful acting director due to a successor the director of the OMB from also serving
statute in the CFPB-creating Dodd-Frank as the acting director of the CFPB,” Kelly
Gupta then filed an amendment complaint Act. wrote in his ruling.
on behalf of English on Dec. 6 requesting
a preliminary injunction. Unlike the English’s attorneys also questioned whether “The President has designated Mulvaney
temporary restraining order, the injunction allowing Mulvaney, who once characterized the CFPB’s acting director, the CFPB has
can be appealed to the U.S. Court of Appeals the bureau as a “sick joke,” to continue recognized him as the acting director, and
for the D.C. Circuit if not granted. Gupta serving as a White House official would it is operating with him as acting director,”
gave no indication that Wednesday’s ruling compromise the bureau’s independence. Kelly continued. “Granting English an
would be appealed, although he expressed The argument was backed by the former injunction would not bring about more
disappointment in Kelly’s decision in a lawmakers who championed the CFPB- clarity; it would only serve to muddy the
Twitter post. creating Dodd-Frank Act. waters.” n
36 | GIADA Independent Auto Dealer FEBRUARY 2018