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That was a short legal snafu. The former head, Richard Cordray, a high level Obama backed Democrat tried to name his own chief of staff as his successor.

The director was attempting to act as an independent agency outside the authority of the executive branch with this move, which is not atypical for Obama appointees and staff. The top lawyer with the agency realized that the moves made by the director was way outside his legal authority and would have been immediately struck down in a highly embarrassing court battle for the agency.

If Trump were to have allowed this move to stand, this would have established a precedent that Congress can establish agencies that derive their authority from Congress and would not be under control of the executive branch. Under the United States Constitution, that is illegal and not within the authority of Congress to establish. It would have been a genuine Constitutional crisis moment.

Mary McLeod recognized the nonexistent legal ground her former agency head and chief of staff were putting them into and correctly smothered their fevered dreams of power in the cradle.

The office of CFPB General Counsel Mary McLeod has prepared a memo concurring with the opinion of the U.S. Justice Department that Trump has the power to appoint his budget chief, Mick Mulvaney, as temporary leader of the federal watchdog agency, according to the sources, who spoke on condition of anonymity. One source said the memo would be sent to CFPB staff on Monday. CFPB officials did not respond to requests by email and phone requesting comment. McLeod’s opinion places her against Richard Cordray, who resigned as CFPB director on Friday and elevated his former chief of staff, Leandra English, to replace him on an interim basis until the Senate confirms a permanent successor named by Trump. Hours later, the Republican president named Mulvaney as acting head, plunging the bureau into uncertainty.

Leandra English wanted to have herself at the helm of the Consumer Financial Protection Bureau and filed a lawsuit against the Trump administration earlier today:

English cites the Dodd-Frank Act, which created the bureau, saying that as deputy director, she became the acting director under the law when Cordray resigned. She also argues that the federal law that the White House says supports Trump’s appointment of Mulvaney doesn’t apply when another statute designates a successor. Her suit seeks a temporary restraining order to block Mulvaney from taking over the bureau.