Suit challenges Trump’s pick for consumer financial bureau

WASHINGTON (AP) — President Donald Trump’s appointment of his budget  director as interim director of a consumer financial protection agency  championed by Democrats was challenged in a lawsuit filed in federal  court Sunday night.

Leandra English, the federal official elevated to the position of  interim director of the Consumer Financial Protection Bureau by its  outgoing director, filed the suit against Trump and his choice, White  House budget director Mick Mulvaney.

The suit in the U.S. District Court for the District of Columbia  asked for a declaratory judgment and a temporary restraining order to  block Mulvaney from taking over the bureau.

English cited the Dodd-Frank Act, which created the Consumer  Financial Protection Bureau. She said that as deputy director, she  became the acting director under the law and argued that the federal law  the White House contends supports Trump’s appointment of Mulvaney  doesn’t apply when another statute designates a successor.

English was chief of staff to bureau director Richard Cordray when he  named her deputy director as he prepared to resign last Friday. Cordray  was appointed to the position by President Barack Obama and has been  long criticized by congressional Republicans as overzealous.

Mulvaney, a former congressman, has called the agency a “joke” and an  example of bureaucracy run amok. He is expected to dismantle much of  what the bureau has done.

The White House, with the support of an opinion issued Saturday by  the Justice Department’s Office of Legal Counsel, maintained that the  president has the power to appoint an acting director. Steven A. Engel,  newly confirmed head of the office, wrote that, while the deputy  director may serve as acting director under the statute, the president  still has authority under the Vacancies Reform Act.

A new director must be confirmed by the Senate. Earlier Sunday, Sen.  John Thune of South Dakota, the third-ranking GOP leader, pledged swift  action whenever Trump nominates a successor to Cordray. Meanwhile, Thune  said he expected that Mulvaney “will be on the job and he’ll be calling  the shots over there,” but acknowledged the issue could end up in  court.

Beyond the fight over who’s in charge is the future direction of the  bureau, created after the 2008 financial crisis and given a broad  mandate as a watchdog for consumers when they deal with banks and credit  card, student loan and mortgage companies, as well as debt collectors  and payday lenders.

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