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Tag Archives: Richard Cordray

Obama Recess Appointments Unconstitutional

A federal appeals court Friday ruled that President Obama’s appointment of three people to the National Labor Relations Board last January was unconstitutional, determining that Obama had made “recess” appointments last January when the Senate was in fact not in recess.

The ruling by the U.S. Court of Appeals for the D.C. Circuit could have bearing on the appointment of Richard Cordray to lead the Consumer Financial Protection Bureau. Cordray was appointed at the same time, and a separate case challenging his appointment is also wending its way through the courts.

Obama appointed Cordray and the NLRB officials after the Senate did not act on their nominations. Ironically, Obama renominated Cordray Thursday for the position.

White House Press Secretary Jay Carney said the ruling would have no ripple effect and only apply to the case that was considered by the appeals court, suggesting that decisions made by the NLRB since the invalid appointments would stand and Cordray wouldn’t be affected.

He gave no hint what the administration’s next step would be.

Have a look.

Did Obama Offer a Faulty Rationale for Cordray Move?

President Obama’s recess appointment Wednesday of Richard Cordray to lead the Consumer Financial Protection Bureau may not allow the agency to perform all of its functions, undermining one of Obama’s key rationales for the controversial move.

Under the law, the agency cannot regulate non-banks until a director is confirmed by the Senate.

Some Republicans, including widely respected Sen. Rob Portman of Ohio, are arguing that the law creating the agency very specifically requires that he be confirmed by the Senate – and not appointed without a Senate vote during a recess – before he can begin to regulate non-banks.

If Cordray’s appointment was not necessary to get the agency fully up and running, it supports the argument that a primary motive for the appointment was political. Cordray is said to be eying higher office in Ohio – Obama’s announcement of the appointment in Ohio sounded a lot like a Cordray campaign rally – and Obama has already begun raising money off the appointment.

The need for confirmation is made explicit in Section 1066 of the Dodd-Frank bill, which created the agency.


(a) IN GENERAL.—The Secretary is authorized to perform the functions of the Bureau under this subtitle until the Director of the Bureau is confirmed by the Senate in accordance with section 1011.

According to the Volokh Conspiracy, a conservative legal blog: “section 1011 is a defined term which provides: ‘The Director shall be appointed by the President, by and with the advice and consent of the Senate.'”

But Obama during his Ohio appearance Wednesday asserted that he needed Cordray in place in order for the agency to go after non-bank entities that he thinks are ripping off customers.

Without a director in place, the consumer watchdog agency that we’ve set up doesn’t have all the tools it needs to protect consumers against dishonest mortgage brokers or payday lenders and debt collectors who are taking advantage of consumers.

The appointment has stirred a furious reaction from Republicans, who say the Senate is not in recess and Obama’s “recess appointment” is illegal.

H/T to two of my readers, Moe and srdem65, for letting me know about this.

Obama Raising Cash Off Cordray Appointment

In a sign of the total collapse of the wall between governing and his reelection campaign, President Obama has begun fundraising off his appointment of Richard Cordray to head the Consumer Financial Protection Bureau, dispatching a money-seeking email the very same day he installed Cordray by recess appointment. According to a piece in Big Government by… Continue Reading

Obama was Right to Appoint Cordray

President Obama did not exceed his powers as president Wednesday when he made a recess appointment of Richard Cordray to lead the Consumer Financial Protection Bureau. There are many actions Obama has taken during his presidency that stir grave concern about presidential overreach and how Obama might use his executive powers if he is reelected.… Continue Reading

Obama to Defy Senate, Appoint Cordray

President Obama will ignore Senate objections and appoint Richard Cordray to lead the newly created Consumer Financial Protection Bureau, according to the Associated Press. Obama will make the appointment even though Republicans have blocked it and the Senate is technically in session. But the White House has concluded that the “pro forma” session is merely a… Continue Reading