Warner, Kaine join 44 senators urging Trump to nominate aggressive consumer watchdog


In a soap opera that seems determined to get ever bubblier, the CFPB has now been sued by a federal credit union looking to stop Mick Mulvaney from being installed as the agency's leader.

As evidence of this point the credit union quotes Mulvaney's description of the CFPB as "a sad, sick joke", and his 2015 testimony before the House of Representatives.

The group calls itself "Dumbledore's Army", a reference to a fictional secret cabal of young wizards in the children's fantasy series "Harry Potter", The New York Times reported.

Other employees, some of whom are in senior leadership, have welcomed Mulvaney, even though he has publicly lambasted the consumer watchdog agency that was formed in the aftermath of the financial crisis. Mr. Mulvaney said he had removed the hold on Wednesday - the day the agency was scheduled to make one of its twice-annual allocation decisions - and approved the dispersal of payments.

Mulvaney has already moved to rapidly change the agency, which he promised upon taking the reins.

Directing CFPB staff to examine all investigations and litigation.

Last week, U.S. District Judge Timothy Kelly denied English's request for a temporary restraining order to prevent Mulvaney from controlling the CFPB, saying that the Federal Vacancies Reform Act appeared "on its face" to allow the president to name an acting director for the agency. "I don't like the fact that CFPB exists, I'll be perfectly honest with you", Mulvaney had said. Trump then announced Mulvaney as acting director.

English has argued that the Dodd-Frank Act, the law that gave rise to the CFPB, should dictate the process for temporarily replacing the agency director.

Calling the move "regulatory chaos" and noting that it has tipped off a pitched fight over who is the legal leader of the regulator, the Lower East Side People's Federal Credit Union petitioned the courts to officially remove Mulvaney, Trump's budget director.

Taken from a video uploaded by the White House in April 2017, this image shows Mick Mulvaney standing in front of federal regulations he says were created in the last two years.

Mulvaney can serve as acting director until a Trump nomination for the post can be confirmed by the Senate, which could take months.