March 29, 2017

Much Ado Most Anything?

Yesterday, I explained why I retrieve that, although the inquiry is perhaps a closed or hard one, at that spot is pregnant argue to uncertainty that President Trump has the authorisation to appoint OMB Director Mick Mulvaney to hold out acting Director of the Consumer Financial Protection Board (CFPB) inwards the wake of Director Richard Cordray’s resignation, equally long equally at that spot is a Deputy Director available—as  there is now—to fill upward that acting role.  As yous may possess got heard, the electrical flow Deputy Director, Leandra English, final nighttime sued the President too Mulvaney, seeking a annunciation that she, non Mulvaney, is the lawful Director of the CFPB.

Although the inquiry of who runs the CFPB is land of enormous significance, too although I also retrieve that English linguistic communication in all likelihood has the improve see on the merits of the Mulvaney appointment question, I am also skeptical whether this heated combat is worth the attending it is receiving, for fifty-fifty if English linguistic communication wins her accommodate (something that is past times no agency certain), the President has at to the lowest degree i way, too perhaps 2 ways, of ensuring that she volition non hold out acting Director for really long.  

First is the obvious one:  Trump could—and should—simply appoint a novel Director forthwith, preferably someone who does non portion Mulvaney’s views that the CFPB is a “sad, sick joke” that should non exist.  The Senate too so could too should carefully consider the nomination.  All of which is to enjoin that the “interim” seat equally acting Director could hold out short-lived, regardless of who is entitled to do it.

Second, it is likely—although perhaps non certain—that Trump could inwards the meantime resolve the dispute close the acting Director past times using his ability of removal.  How he would create so, however, powerfulness hold out a fleck tricky.  (The next thoughts are a fleck tentative, too uncertain. If anyone knows of whatsoever relevant precedents on these removal questions, delight allow me know, thanks.)

He could, for example, endeavor to take English linguistic communication from her seat equally acting Director.  (Whether the President tin take the CFPB Director without drive is currently the dependent land of an en banc proceeding inwards the U.S. Court of Appeals for the D.C. Circuit.  But whatever the answer to that inquiry powerfulness be, equally far equally I know OLC is right (see pp. 6-7) that the statute does non afford an acting Director “for cause” removal protection—that is to say, the President tin take her “at will.”) 

The potential problem alongside this possibility, however, is that equally long equally English linguistic communication remains Deputy Director, the Dodd-Frank constabulary I discussed yesterday would look to afford her the authorisation to human activeness equally Director, too, too thereby foreclose the President from appointing someone else equally acting Director pursuant to the Vacancies Reform Act of 1998 (assuming, of course, that English linguistic communication is right close the interrelationship of Dodd-Frank too the VRA).

Therefore, the to a greater extent than probable way that Trump powerfulness endeavor to secure Mulvaney’s appointment would hold out to take English linguistic communication from her occupation as Deputy Director—which would automatically also take her authorisation to hold out acting Director. 

There would hold out a legal wrinkle alongside honour to this tactic, too, however:  The ordinary presumption is that Congress has assigned the removal ability to the officeholder who is authorized to brand the appointment inwards the origin place, i.e., that the removal authorisation is incident to the appointment authority.  See, e.g., Ex parte Hennen, 38 U.S. (13 Pet.) 230, 259-60 (1839); accord PCAOB v. FEF, 561 U.S. 477, 493 (2010).  This explains why Richard Nixon did non endeavor to personally take Archibald Cox (or, for that matter, Leon Jaworski), too (as I possess got explained) why Donald Trump cannot burn Special Counsel Robert Mueller.  And Dodd-Frank assigned the CFPB Director—not the President—the authorisation to appoint the Deputy Director (which is what happened—Cordray appointed English).  The removal power, therefore, usually would belong to the CFPB Director, equally well—not to President Trump.

The job here, of course, is that the Deputy Director herself (I am assuming here) is straight off acting equally the Director.  The logic of the Hennan presumption, therefore, would hold out that solely Leandra English, equally acting Director, could take English linguistic communication herself from her occupation equally Deputy Director.  And that would hold out absurd.  (Imagine, for instance, a instance inwards which at that spot is clear drive for her removal—a instance of graft, or accepting a bribe.  Congress can’t perhaps possess got intended, inwards such a case, that the solely individual who could take English linguistic communication would hold out English linguistic communication herself.)  Therefore, this might well hold out a province of affairs inwards which the Hennan presumption is rebutted, too it would hold out fair to assume Congress intended the President himself to possess got the ability to take the Deputy Director when she is also the acting Director. 

If this is correct—and offhand, I don’t encounter whatsoever other plausible option “reading” of the removal authority—then Trump tin merely take English linguistic communication from the occupation of Deputy Director (which I create non believe is protected past times whatsoever “for cause” removal standard), which would automatically eliminate her authorisation to human activeness equally Director.

And then, because the Dodd-Frank designation of the Deputy Director to hold out acting Director could non hold out implemented (as there’d hold out no Deputy to measuring into the interim role), presumably the provisions of the VRA would kicking dorsum in, too the President could appoint Mulvaney.


As I said at the outset, however, all these machinations, too the litigation, actually ought to hold out beside the point, because the proper way of replacing Richard Cordray would hold out for the President to expeditiously appoint his successor, past times too alongside the advice too consent of the Senate.

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