Judge Rejects Request for Injunction, Harmonizes Authority to Choose Interim CFPB Director

A federal judge again this week denied a request by Consumer Financial Protection Bureau (CFPB) Deputy Director Leandra English to block current Interim Director Mick Mulvaney from leading the agency. After rejecting English’s request for an emergency order shortly after Thanksgiving, she filed for an injunction in December.

U.S. District Court Judge Timothy Kelly, an appointee of President Trump, wrote in his ruling that English had failed to “demonstrate a likelihood of success on the merits or shown that she will suffer irreparable injury.” Judge Kelly refused to consider the policies or priorities that each potential director might pursue in coming to his conclusion.

At issue is whether the provisions of the Dodd-Frank Act that authorize the deputy director to lead the Bureau in the absence of the director or the Federal Vacancies Reform Act allows the President to appoint a temporary caretaker. Judge Kelly found that the two statutes could be read harmoniously. Dodd-Frank allows the deputy director to ascend to the temporary leadership role, but that does not preclude the President from naming an interim director to supercede the Dodd-Frank authorization.

Although English’s attorney expressed disappointment in the decision, he did not discuss whether or not there would be an appeal.