Battle over control of federal consumer watchdog heads to court

White House budget director Mick Mulvaney
(Image credit: Alex Wong/Getty Images)

Late Sunday, one of two officials who will show up on Monday to lead the Consumer Financial Protection Bureau filed suit, asking a federal court to block the other claimant. The fight over short-term control of the top U.S. consumer financial watchdog began Friday, when CFPB director Richard Cordray resigned and appointed his chief of staff, Leandra English, deputy director and thus, under the Dodd-Frank financial reform law, acting director. President Trump then appointed his White House budget director, Mick Mulvaney, acting director, citing a more general law, the Federal Vacancies Reform Act.

English filed suit in U.S. District Court in Washington, D.C., asking for a temporary restraining order and recognition of her claim to be "rightful acting director." Trump's "purported or intended appointment of defendant Mulvaney as acting director of the CFPB is unlawful," English's suit argues. "The president's attempt to appoint a still-serving White House staffer to displace the acting head of an independent agency is contrary to the overall statutory design and independence of the bureau."

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Peter Weber, The Week US

Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.