A New York credit union challenging the appointment of Mick Mulvaney as acting director of the CFPB does not have standing to challenge the appointment, the Department of Justice said in documents filed in a New York federal court.

“All Plaintiff’s brief offers on standing is six words in a footnote: ‘Plaintiff is regulated by the CFPB.,'" the Justice Department said. "That bald assertion does not suffice.”

The Lower East Side People’s Federal Credit Union filed suit in U.S. District Court for the Southern District of New York contending that President Trump illegally appointed Office of Management and Budget Director Mick Mulvaney to serve as interim director of the agency.

The credit union contends that Leandra English, the agency’s newly appointed deputy director, should be running the agency under the Dodd-Frank Act. However, the administration contends in this suit and another filed by English, that the Federal Vacancies Act gave President Trump the authority to make the appointment.

When agency Director Richard Cordray resigned, he appointed English as deputy director. Cordray and English argue that under Dodd-Frank, English is the proper acting director since the law states that the deputy serves as director when the director is absent or unavailable.

The credit union is asking for an injunction prohibiting Mulvaney from serving as director.

The Justice Department said that even before considering the substantive argument, Judge Paul Gardephe of the Southern District of New York, should dismiss the suit because the credit union lacks standing.

The department said that the credit union has not cited specific regulations they feel that Mulvaney is improperly enforcing. As a result, it would be improper for the judge to issue a preliminary injunction.

And the Justice Department noted that CUNA has filed a brief in the Washington, D.C. suit supporting the administration’s argument. The lower east side credit union is not a member of CUNA or NAFCU.

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