Thursday, January 05, 2012
Obama's Appointment of Cordray was Illegal
Lots of Republicans are angry at President Obama's recess appointment of Richard Cordray as the head of the Consumer Financial Protection Bureau (CFPB). One argument being used that Obama's action was illegal is that the Senate is not in recess, instead being brought into session for a few minutes every few days.
I believe that the argument above is with merit. However, there's one that is just as good contained within the text of the Dodd-Frank Bill itself, the legislation that created the CFPB. That legislation states that the board needs a director to exercise its designated powers, and that director can exercise those powers once he or she "is confirmed by the Senate."
That obviously didn't happen here, and it is a reasonable interpretation of the law that the Congress specifically was stating through its legislative intent that the director not be subject to a recess appointment.
So, even if a judge found that the Senate is for all intents and purposes in recess, that doesn't win the day for Obama. He still doesn't have a director, as per the terms of the legislation that created a need to have one in the first place.
Someone needs to challenge Cordray's appointment in federal court - and soon - before the CFPB starts making a mess of things through actions that will be difficult to undo.
I believe that the argument above is with merit. However, there's one that is just as good contained within the text of the Dodd-Frank Bill itself, the legislation that created the CFPB. That legislation states that the board needs a director to exercise its designated powers, and that director can exercise those powers once he or she "is confirmed by the Senate."
That obviously didn't happen here, and it is a reasonable interpretation of the law that the Congress specifically was stating through its legislative intent that the director not be subject to a recess appointment.
So, even if a judge found that the Senate is for all intents and purposes in recess, that doesn't win the day for Obama. He still doesn't have a director, as per the terms of the legislation that created a need to have one in the first place.
Someone needs to challenge Cordray's appointment in federal court - and soon - before the CFPB starts making a mess of things through actions that will be difficult to undo.
Labels: Legislative Intent, President Obama, Recess Appointments
Permalink posted by Rob Huddleston @ 6:52 AM 
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