The fight over who controls the Consumer Financial Protection Bureau came down on the side of the Trump administration when a federal judge Tuesday refused to issue an order to block OMB Director Mick Mulvaney.
The emergency move to block Mulvaney from taking over at CFPB failed, Tuesday in the federal court in the District of Columbia when the judge refused to issue a restraining order against Mulvaney.
The order by U.S. District Judge Timothy Kelly rejecting a temporary restraining order request allows Mulvaney to take over the consumer agency that he wants to hobble.
CFPB Director Richard Cordray resigned on Friday, but before he went out the door, he named his chief of staff Leandra English to take over.
Trump countered by naming head of the Office of Management and Budget, Mulvaney, to become director and both English and Mulvaney went to work in the same job Monday, causing the legal showdown.
English quickly sued to prevent Mulvaney from taking the job but Kelly refused the move.
Mulvaney had already instituted a 30-day freeze on hiring, rulemaking, regulations, guidance, and payments to consumers from the civil penalties fund. The fund is used to compensate Americans harmed by banks and other financial institutions.
One of the most prominent cases by the CFPB was a $100 million fine imposed on Wells Fargo for its illegal practice of secretly opening unauthorized accounts, usually credit card accounts for consumers who would then be hit with penalties.
Case: English v. Trump, No. 17-2534, DC District