President Donald Trump has "every right" to name the director of the Consumer Financial Protection Bureau, but he is going about it the wrong way by naming Mick Mulvaney as the acting director, the attorney for Leandra English told CNBC on Monday.
Deepak Gupta has filed a lawsuit on behalf of English, seeking to block Mulvaney from taking over. English, the deputy director at the consumer watchdog group, insists she is the rightful acting director after outgoing director Richard Cordray named her for the role last week.
Gupta told "Power Lunch" it is very clear that Congress put in a succession plan when it created the agency in the Dodd-Frank reform bill — the deputy director becomes the acting director until the Senate confirms a new director.
"What President Trump has done is an attempt at an end run," he said.
"He's attempted to install a White House staffer, his OMB director, into the position without getting Senate confirmation and have that person, Mick Mulvaney, simultaneously serve as a White House official and as a head of an independent agency that's required by statute to be independent."
The Trump administration believes it will prevail, in large part because the CFPB's own general counsel issued a ruling that supports the White House move. Further, English filed the lawsuit on her own behalf, without the agency's backing.