Economy

Warren Urges CFPB Defenders to Fight Trump's 'Double Kiss to Wall Street'

Warren Urges CFPB Defenders to Fight Trump's 'Double Kiss to Wall Street'

A federal judge in Washington declined Tuesday to force out Mick Mulvaney, President Donald Trump's choice to serve as acting director of the Consumer Financial Protection Bureau.

The battle between two supposed directors of the Consumer Financial Protection Bureau is making for compelling optics but only seems to be delaying a tidal shift at the powerful consumer watchdog. "And now it's time for us to fight for the agency".

Cordray announced Friday that he had appointed Leandra English as the agency's deputy director, which made her the acting chief, but within hours President Trump appointed Mulvaney, the White House budget chief, to fill the post.

But the statute that established the CFPB says that its deputy director "shall" become acting director when there's a vacancy in the director's chair.

In his bench ruling, Judge Timothy Kelly said he would not stop Mick Mulvaney, now White House budget director, from taking the job.

"Plaintiff's arguments to the contrary rest on a bureaucratic sleight-of-hand effected on the final day of former CFPB Director Richard Cordray's tenure", it said, alluding to English's elevation by Cordray to the agency's top job on an acting basis.

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Outside of the courtroom Tuesday, English's attorney told reporters he and his client have options to consider: "We could file a preliminary injunction, or we could file an appeal or we could file a motion to end this case and take it straight to DC circuit court".

Gupta said that English also carried out bureau business Monday, going into the bureau Monday morning, emailing employees, and meeting with lawmakers including Sens. Appearing Monday night on The Rachel Maddow Show, Cordray said the "the law is clear here" that English is next in line for acting director.

A new director for the CFPB must be confirmed by the Senate.

"The story here is the future of the CFPB and why this person is one of the most unqualified and unsuitable people to head it", said Mike Calhoun, president of the Center for Responsible Lending, a consumer advocacy group.

He's a budget director in charge of what is effectively an off-budget federal agency, with the CFPB relying on transfers from the Federal Reserve System rather than annual appropriations from Congress. He also announced that he was appointing the bureau's chief of staff, Leandra English, to deputy director - a promotion that was meant to ensure she would take over as acting director until a permanent successor is nominated by Trump and confirmed by the US Senate.

The CFPB has been working on rules for the past few years to address bank overdraft fees and the tactics used by debt collectors.