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U.S. court backs Trump in battle over interim consumer watchdog head

By Patrick Rucker and Michelle Price

 

Office of Management and Budget (OMB) Director Mick Mulvaney speaks to the media at the U.S. Consumer Financial Protection Bureau (CFPB), where he began work earlier in the day after being named acting director by U.S. President Donald Trump in Washington November 27, 2017. REUTERS/Joshua Roberts

 

WASHINGTON (Reuters) - A U.S. District Court judge on Tuesday sided with President Donald Trump in a legal battle over who should be in charge of the U.S. consumer finance watchdog, allowing White House budget director Mick Mulvaney to serve as acting head.

 

Judge Timothy Kelly ruled against Leandra English, deputy director of the Consumer Financial Protection Bureau (CFPB) who claimed to be its rightful interim director. He denied her request for a temporary restraining order to block Mulvaney's appointment.

 

Kelly said the 1998 Federal Vacancies Act gives the White House the power to say who is in charge at the watchdog.

 

"Undeniably, the CFPB was intended to be independent, but it is part of the executive branch,” Kelly, a Trump appointee, said.

 

The decision was a blow for Democrats and consumer advocacy groups who had rallied to English's cause.

 

CFPB Director Richard Cordray, a Democrat appointed by the Obama administration, resigned on Friday and named English to lead the agency until a new director was confirmed by the U.S. Senate, a process that could take months.

 

Hours later, Trump said Mulvaney would lead the agency on an interim basis, sparking an unprecedented showdown.

 

The CFPB was created to crack down on predatory financial practices after the 2007-2009 financial crisis, but it is reviled by Republicans who say it is too powerful.

 

Speaking to reporters outside the court in Washington, English's lawyer, Deepak Gupta, said he would take the case to a higher court.

 

"I think whatever happens here there is going to be an appeal," he said.

 

The White House applauded the ruling. "It’s time for the Democrats to stop enabling this brazen political stunt by a rogue employee and allow Acting Director Mulvaney to continue the Bureau’s smooth transition into an agency that truly serves to help consumers,” Deputy Press Secretary Raj Shah said.

 

Trump has long sought to weaken or abolish the 1,600-employee agency, saying too many regulations are suffocating lending.

Mulvaney sought to dismantle the CFPB when he served as a Republican in the U.S. House of Representatives.

 

Democrats say the agency needs to oversee consumer financial products such as mortgages and have power over large non-bank financial companies to protect borrowers.

 

(Reporting by Michelle Price, Pete Schroeder, Patrick Rucker and Makini Brice; Writing by Doina Chiacu and Michelle Price; Editing by Jonathan Oatis and Cynthia Osterman)

 

-- © Copyright Reuters 2017-11-29

[blazes]

So much (once again) for "draining the swamp".

 

I wonder how long it will take Trump's loyal supporters to figure out what he is up to...

[Boon Mee]

Only makes complete sense. 

 

There's been a dark cloud of impropriety hanging over this agency too long. 

[Jingthing]

(Unfortunately) the law was on any president's side (and tragically the clown troll named trump currently holds that office) as far as the power to pick the head of this agency. But he picked someone (typically for trump) that doesn't even think the agency he now heads should even exist. Bizarre and dangerous times we live in. 

Edited November 29, 2017 by Jingthing

[selftaopath]

The would be dictator is all about the $$$$$$$.

 

[Srikcir]

49 minutes ago, Boon Mee said:

Only makes complete sense. 

 

There's been a dark cloud of impropriety hanging over this agency too long. 

I'm sure Wells Fargo Bank would agree, having to pay CFPB $100 million in fines for as many as 3.5 million bank and card accounts in customers’ names without their permission.

https://www.reuters.com/article/us-wells-fargo-accounts-cfpb/u-s-watchdog-settled-for-small-fine-over-wells-fargo-phony-accounts-report-idUSKCN1BU2FX

But I'm sure other banks henceforth will sigh with relief as CFPB is dismantled. Maybe WFB can restart all those fake accounts.

[TallGuyJohninBKK]

1 hour ago, Boon Mee said:

Only makes complete sense. 

 

There's been a dark cloud of impropriety hanging over this agency too long. 

 

Only Trump would appoint someone to head a consumer protection agency who has/had always opposed it and tried to see it dismantled -- and then claim to be protecting consumers in the process.

 

Such disingenuous double-talk would be truly remarkable for most politicians, but for Trump, it's just another day Making America Worse Again.

[Srikcir]

56 minutes ago, Jingthing said:

the law was on any president's side

We'll see on Appeal.

 

DOJ argues that the earlier Vacancies Act exists as an alternative to the later Dodd-Frank Act and that the president can pick and choose between these two statutes. Ultimately, both laws lead to the same result - presidential nomination approved by Senate confirmation to fill the vacancy. But Trump wants an immediate win for his first year - replacement now without Senate confirmation that would include Democrat questioning.

https://www.npr.org/2017/11/27/566808606/how-the-dodd-frank-act-plays-into-the-cfpb-succession-debate

 

[Jingthing]

Just now, TallGuyJohninBKK said:

 

Only Trump would appoint someone to head a consumer protection agency who has/had always opposed it and tried to see it dismantled -- and then claim to be protecting consumers in the process.

 

Such disingenuous double-talk would be truly remarkable for most politicians, but for Trump, it's just another day Making America Worse Again.

Exactly. What a farce!

 

 

[Trouble]

This agency is just another example of how Congress passes legislation to "protect the consumer" and it grows into a 1600 person bureaucracy. The sad part of all this is that the consumers the government are trying to protect are just too stupid to read the contracts they sign when they get loans, credit cards, etc.  To be sure there are  problems with some, not all, financial institutions, but if people weren't so stupid there would be a lot fewer problems.  The biggest problem consumers have is borrowing from bank,s money they can't repay, per the contract.  But it seems the blame is placed on the "predatory" lender. 

[Foozool]

Trump wished to see a day like today. A day that his (of course family wish) long time wishes could come true. 

The bigest wish, the tax cut. No republican likes "tax" including Trump. 

And disabling consumer rights. 

Bye Bye democracy. Welcome to dictatorship capitalism.