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CFPB row: Leandra English defies Trump appointed rival CFPB row: Judge rules Trump pick to run US watchdog
(about 4 hours later)
The US official caught in a legal battle over who should run the Consumer Financial Protection Bureau (CFPB) says she intends to spend the day at work. A federal judge has sided with US President Donald Trump in a legal fight over who should run the country's top financial watchdog agency.
Leandra English filed a lawsuit after President Donald Trump named his budget chief Mick Mulvaney acting CFPB head. Mick Mulvaney will remain as the acting director of the Consumer Financial Protection Bureau (CFPB), US District Judge Timothy Kelly ruled.
There was turmoil on Monday when Mr Mulvaney arrived at the bureau, insisting he was in charge. CFPB Deputy Director Leandra English filed a lawsuit after Mr Trump named his budget chief to the role.
A judge will rule in the coming hours or days whether Mr Mulvaney or Ms English should run the bureau. The power struggle emerged after CFPB's permanent director resigned on Friday.
Ms English was named acting director on Friday by outgoing head Richard Cordray, who was appointed by the Obama administration. Outgoing head Richard Cordray, who was appointed by the Obama administration, named Ms English his successor as acting director.
But hours later, Mr Trump named his own choice of acting director. The president has been an outspoken critic of the agency, calling it a "total disaster". But hours later, Mr Trump named Mr Mulvaney, his White House budget director, as his choice. The president has been an outspoken critic of the agency, calling it a "total disaster".
"Denying the president's authority to appoint Mr Mulvaney raises significant constitutional questions," said Judge Kelly, who was appointed by Mr Trump in Washington in September.
But he added there was nothing in the statutes that prevented Mr Mulvaney from holding both positions.
White House spokesman Raj Shah praised the ruling in a statement on Tuesday, saying it provided "further support for the president's rightful authority to designate Director Mulvaney as acting director of the CFPB".
Mr Mulvaney has previously called the CFPB a "sick, sad joke" that should be scrapped.Mr Mulvaney has previously called the CFPB a "sick, sad joke" that should be scrapped.
The CFPB was set up after the 2007 financial crash to protect Americans from predatory lenders. However, Republicans say it places excessive regulatory burdens on Wall Street.The CFPB was set up after the 2007 financial crash to protect Americans from predatory lenders. However, Republicans say it places excessive regulatory burdens on Wall Street.
"I plan on spending the day at CFPB headquarters taking calls and meetings with external stakeholders and bureau staff," Ms English said in a statement. Ms English's lawsuit, filed on Sunday, asked a judge at a federal court in Washington DC to issue a temporary restraining order against the appointment of Mr Mulvaney, arguing that the law states that as deputy director she is entitled to take power until the Senate can vote to confirm another director.
Mr Mulvaney intends to divide his time between the CFPB offices and his job as White House budget director, US media reported. She also contended that Mr Mulvaney could not serve as the White House head of the Office of Management and Budget as well as the head of the independent financial watchdog agency.
It was unclear which office he was occupying on Tuesday. In response, the White House said the president had the authority to appoint Mr Mulvaney under the Federal Vacancies Reform Act.
A US district judge is due to hear the case later in the day. One of the senators who helped set up the bureau, Elizabeth Warren, said she believed the legal dispute would continue to an appeals court.
But one of the senators who helped set up the bureau, Elizabeth Warren, said she believed the legal dispute would continue to an appeals court.
"It's too important to everyone to let it rest at the district court," she told Reuters."It's too important to everyone to let it rest at the district court," she told Reuters.
Ms Warren led a protest rally outside the CFPB offices in Washington on Tuesday, calling for Mr Mulvaney to step aside.Ms Warren led a protest rally outside the CFPB offices in Washington on Tuesday, calling for Mr Mulvaney to step aside.
Mr Mulvaney - who turned up at the bureau on Monday morning carrying donuts for employees - sent another memo advising staff to ignore Ms English.Mr Mulvaney - who turned up at the bureau on Monday morning carrying donuts for employees - sent another memo advising staff to ignore Ms English.
"Consistent with my email from yesterday," he wrote, "please disregard any email sent by, or instructions you receive from, Ms English when she is purporting to act as the Acting Director.""Consistent with my email from yesterday," he wrote, "please disregard any email sent by, or instructions you receive from, Ms English when she is purporting to act as the Acting Director."
Ms English's lawsuit, filed on Sunday, asked a judge at a federal court in Washington DC to issue a temporary restraining order against the appointment of Mr Mulvaney.
The legal action said: "The president's purported or intended appointment of defendant Mulvaney as acting director of the CFPB is unlawful."
In response, the White House said the president had the authority to appoint Mr Mulvaney under the Federal Vacancies Reform Act.
But a lawyer for Ms English says the law states that as deputy director she is entitled to take power until the Senate can vote to confirm another director.