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Richard Cordray’s Successor Sues Trump To Block Mulvaney’s Appointment To CFPB

According to court documents show obtained by CNN, former Consumer Financial Protection Bureau Director Richard Cordray’s hand-picked successor is suing President Donald Trump over his appointment of Mick Mulvaney to head the agency.

Lawyers for Leandra English, whom Cordray named the effective acting director when he resigned on Friday, filed the lawsuit in the US District Court for the District of Columbia seeking to block the appointment of Mulvaney, who serves as head of the Office of Management and Budget and is also named in the lawsuit, CNN reported Sunday night.

More from the report:

English’s move marks a stunning turn of events at the agency, which was created after the financial crisis to protect consumers and keep an eye on Wall Street. While serving in Congress, Mulvaney voted in favor of killing the bureau, arguing it has too much power and instills unduly harsh regulations, and he has worked alongside Trump to roll back some of the agency’s rules.

In his exit letter, Cordray said the consumer agency’s work is vital to the US economy, and proponents, such as Massachusetts Democratic Sen. Elizabeth Warren, say it plays a key role in preventing big business from preying on the little guy.

In their court filing, attorneys for English argue she is entitled to the position under the Dodd-Frank Wall Street reform law, which created the agency and says the deputy director becomes acting director when the agency’s top spot is vacant. When Cordray resigned, he named English, then his chief of staff, as deputy director, establishing her as the bureau’s acting director.

But Trump named Mulvaney the head of the agency shortly after Cordray appointed English, signaling a potential showdown over who will take charge of the federal watchdog agency.

“The President’s attempt to install a White House official at the head of independent agency — while allowing that officer to simultaneously serve in the White House — is unprecedented,” said English’s lawyer, Deepak Gupta of the law firm Gupta Wessler, in a statement. “The law is clear: Ms. English is acting director of the Consumer Financial Protection Bureau until the Senate confirms a new director.”

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