Trump’s legal battle over leadership of the consumer protection agency he is ‘gutting’ intensifies amid congressional grilling

mick mulvaney

The battle over the Consumer Financial Protection Bureau (CFPB) came to a head recently with congressional hearings and oral arguments in a court battle over the agency’s leadership.
Mick Mulvaney, the White House budget director and acting head of the CFPB, defended his alleged “gutting” of the bureau in his first public face-off with the agency’s creator, Sen. Elizabeth Warren.
Meanwhile, a senior official at the CFPB whom the former director named as his successor, challenged the legality of Mulvaney’s interim leadership in a federal appeals court.

The battle over the Consumer Financial Protection Bureau (CFPB) came to a head last week as its controversial director, Mick Mulvaney, faced congressional questioning and the legal battle over his leadership played out in a Washington, DC courtroom.

Mulvaney has held two jobs — as the director of the Office of Management and Budget and as the interim head of the bureau he once called a “sick, sad joke” — ever since the president installed him as the CFPB’s acting director following the previous director’s resignation in late November.

His leadership of the bureau has been marked by a protracted fight over the legality of his appointment and a clash between Mulvaney’s team and supporters of the agency, who say he is determined to gut its mission.

When former CFPB director Richard Cordray stepped down last fall, Cordray named his chief of staff, Leandra English, to succeed him as acting director until the Senate confirmed a new leader of the bureau appointed by President Donald Trump.

After Trump appointed Mulvaney to take over the agency as its interim head, English sued Trump. A federal judge denied English’s requests to remove Mulvaney and empower her, but English appealed the case to the DC appeals court.

English and her supporters argue that the 2010 Dodd-Frank Wall Street reform legislation, which birthed the CFPB, explicitly states that the deputy director of the agency will “serve as acting director in the absence or unavailability of the director.”

The administration is arguing that the 1998 Federal Vacancies Reform Act supersedes the statute and gives the president the authority to appoint a Senate-confirmed official to the role.

The Dodd-Frank writers themselves, former Rep. Barney Frank and former Sen. Christopher Dodd, signed on to one of five amicus briefs supporting English’s position. They argue that they specifically intended that the deputy director assume control of the agency before a new head is nominated by …read more

Source:: Business Insider

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