The court said the credit union did not have legal authority to sue
A federal credit union’s attempt to block Mick Mulvaney from serving as acting director of the Consumer Financial Protection Bureau has failed after its lawsuit was dismissed, Reuters reported.
The Lower East Side People’s Federal Credit Union filed the case in December, arguing that President Donald Trump’s appointment of Mulvaney was an “illegal takeover.” The credit union sought a court declaration that CFPB Deputy Director Leandra English should be acting director instead. English was named by former CFPB Director Richard Cordray as his interim successor.
US District Judge Paul Gardephe said the credit union did not have the legal authority to sue and rejected what he described as the plaintiff’s “fear-based theory of standing.”
“Organizations advocating for a particular policy goal who have alleged no injury to themselves as organizations may not establish their standing simply on the basis of that goal,” Gardephe wrote.
Ilann Maazel, counsel for the credit union, told Reuters that his client was disappointed about the decision, adding that they are evaluating their options. Meanwhile, US Department of Justice spokeswoman Kerri Kupec said the department welcomed the dismissal, calling Trump’s appointment of Mulvaney a “lawful designation.”
Mulvaney has recently introduced several changes to the consumer watchdog. He has initiated a critical review of the agency’s policies and procedures, requested a zero-dollar budget from the Federal Reserve, and told bureau staff that agency enforcement will now be marked by “humility and prudence.”
Last week, a federal appeals court ruled that the president can only remove a CFPB director for cause, saying it is constitutionally permissible for Congress to insulate the role from presidential will.
Related stories:
NY federal credit union sues Trump, Mulvaney over “illegal takeover” of CFPB
CFPB leadership dispute rages on
The Lower East Side People’s Federal Credit Union filed the case in December, arguing that President Donald Trump’s appointment of Mulvaney was an “illegal takeover.” The credit union sought a court declaration that CFPB Deputy Director Leandra English should be acting director instead. English was named by former CFPB Director Richard Cordray as his interim successor.
US District Judge Paul Gardephe said the credit union did not have the legal authority to sue and rejected what he described as the plaintiff’s “fear-based theory of standing.”
“Organizations advocating for a particular policy goal who have alleged no injury to themselves as organizations may not establish their standing simply on the basis of that goal,” Gardephe wrote.
Ilann Maazel, counsel for the credit union, told Reuters that his client was disappointed about the decision, adding that they are evaluating their options. Meanwhile, US Department of Justice spokeswoman Kerri Kupec said the department welcomed the dismissal, calling Trump’s appointment of Mulvaney a “lawful designation.”
Mulvaney has recently introduced several changes to the consumer watchdog. He has initiated a critical review of the agency’s policies and procedures, requested a zero-dollar budget from the Federal Reserve, and told bureau staff that agency enforcement will now be marked by “humility and prudence.”
Last week, a federal appeals court ruled that the president can only remove a CFPB director for cause, saying it is constitutionally permissible for Congress to insulate the role from presidential will.
Related stories:
NY federal credit union sues Trump, Mulvaney over “illegal takeover” of CFPB
CFPB leadership dispute rages on
