US & World

Trump wins opening round in legal battle over consumer watchdog agency

President Donald Trump speaks to the media during a meeting with congressional leadership in the Roosevelt Room at the White House on November 28, 2017 in Washington, DC.
President Donald Trump speaks to the media during a meeting with congressional leadership in the Roosevelt Room at the White House on November 28, 2017 in Washington, DC.
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A federal court has denied a request for a temporary restraining order sought by an Obama-era appointee seeking to block the Trump administration from assuming control of the Consumer Financial Protection Bureau.

The ruling by U.S. District Court Judge Timothy Kelly is a victory for President Trump who appointed White House budget director Mick Mulvaney to take charge of the CFPB after the resignation of its previous director, Richard Cordray.

Cordray had attempted to appoint Leandra English, the CFPB's deputy director, as his successor. That move set the stage for a power struggle with the White House over who will run the federal agency designed to represent consumers in disputes with major financial institutions over issues such as credit cards, checking accounts and debt collections. English sued, asking a judge for an order blocking Mulvaney from taking over the CFPB while the case is adjudicated.

Sen. Elizabeth Warren, D-Mass., who spearheaded the creation of the CFPB, told Reuters earlier that she had "no doubt" there would be an appeal no matter which way Kelly ruled.

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This story has been updated.