In response, the White House named Mulvaney as the replacement for Cordray. He also wrote that there was nothing in Dodd-Frank that barred the head of OMB from also serving as acting director of the CFPB.
English, who has been with the CFPB since its 2011 inception, subsequently lobbed a lawsuit and engaged in some public sparring with Mulvaney, a longtime critic of the bureau he now heads. The CFPB's previous Director, Richard Cordray, resigned effective at midnight on the day after Thanksgiving: Friday, November 24, 2017. But he had previously indicated English would appeal, saying that "I think everyone understands this court is not the final stop, this judge does not have the final word on what happens in this controversy".
A federal court this week rejected English's argument, leading her to file a further challenge with the U.S. Court of Appeals for the District of Columbia Circuit.
English filed the suit in the U.S. District Court of DC on Sunday in order to block Mulvaney from taking over, an action directed by President Donald Trump, the Washington Post reports.
Chelsea Manning files to run for US Senate in Maryland
In July, she dissented Trump's choice to forbid transgender individuals from the military at a rally at the White House. In his statement, Obama said that Manning's sentence was "disproportionate" to those faced by other whistleblowers.
English's attorney, Deepak Gupta, promptly blasted Kelly's ruling and expressed concern over Mulvaney's intentions to drastically curtail the bureau's authority, noting his history of siding with big banks over consumers. English then filed the motion for a preliminary injunction to block Mulvaney's appointment, and Kelly heard arguments on December 22.
Trump has yet to name a permanent CFPB director, and Mulvaney has said he expects to be in the interim role for up to seven months. At the time even the CFPB's own general counsel said the law was on the President's side, but it was clear that a protracted legal battle lay ahead. He did not say if or when they would appeal. "Mr. Mulvaney's appointment undermines the Bureau's independence and threatens its mission to protect American consumers". "Granting English an injunction would not bring about more clarity; it would only serve to muddy the waters".
Department of Justice spokeswoman Lauren Ehrsam told Law360, "We are pleased the court vindicated the President's authority to appoint Mick Mulvaney as Acting Director of CFPB, finding that Ms".
"Because the court has determined that English is not likely to succeed on the merits, the balance of the equities would necessarily weigh against granting her an injunction", Kelly said in his opinion.