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Court sides with Trump in consumer agency fight

A federal judge on Tuesday rejected a lawsuit from an official who claims that she, and not President Trump appointee Mick MulvaneyJohn (Mick) Michael MulvaneyOvernight Regulation: EPA sued over water rule delay | House passes bill to ease ObamaCare calorie rule | Regulators talk bitcoin | Patient groups oppose FDA 'right to try' bill Mnuchin wants to know how consumer bureau is handling Equifax breach Overnight Finance: Senators near two-year budget deal | Trump would 'love to see a shutdown' over immigration | Dow closes nearly 600 points higher after volatile day | Trade deficit at highest level since 2008 | Pawlenty leaving Wall Street group MORE, is the rightful director of the Consumer Financial Protection Bureau (CFPB).

Judge Timothy Kelly of the U.S. District Court of the District of Columbia refused to grant Leandra English a restraining order to bar Mulvaney from serving as the CFPB’s acting director.

The ruling from Kelly, a Trump appointee, clears the way for Mulvaney to run the CFPB until a permanent director is sworn in or English successfully appeals the decision.

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Trump last week appointed Mulvaney to temporarily lead the CFPB until the lawmakers confirm his pick to replace Richard CordrayRichard Adams CordrayOvernight Tech: Mulvaney reportedly froze Equifax hack probe | Dems want new restrictions on Comcast-NBC | NJ gov signs net neutrality order | Senate confirms patent chief Overnight Finance: Dow down over 1,000 in biggest one-day point drop | GOP to play hardball with Dems on funding bill | Mulvaney reportedly freezes Equifax probe | Powell sworn in as Fed chair Overnight Regulation: Labor IG to investigate tip-pooling rule | Mulvaney reportedly puts brakes on Equifax probe | Dems want new restrictions on Comcast MORE, who resigned as the agency's director on Friday.

The president was able to appoint Mulvaney to the role because he was already confirmed by the Senate for another position — director of the Office of Management and Budget. 

The legal dispute arose because Cordray, in one of his final acts at the agency, promoted English, his former chief of staff, to the role of deputy director.

Under the agency's line of succession, that would make English acting director upon Cordray's resignation.

But the White House said the president has clear authority to name an acting director to the agency and quickly announced that Mulvaney would assume the role.