President Uses Recess Appointment Authority to Install Cordray as CFPB Director


More than a year-and-a-half after President Obama signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act, which created the Consumer Financial Protection Bureau (“CFPB”), the CFPB finally has a “Director” – although the Director is not who many thought and hoped it would be (Elizabeth Warren), nor was the process of installing the Director in office the process contemplated by the authors of the Dodd-Frank Act, which says that “… the Director shall be appointed by the President, by and with the advice and consent of the Senate.” (Sec. 1011(b)(2)).

By the time the inaugural Director of the CFPB was installed, former Ohio Attorney General Richard Cordray was the nominee to head the fledgling bureau rather than Harvard Law Professor Elizabeth Warren, who is back in Massachusetts running for the United States Senate seat currently held by Senator Scott Brown (R-MA) who, ironically, was one of only three Republican senators who voted to approve the Dodd-Frank Act that created the CFPB. And the process followed was not through a vote in the Senate reflecting “the advice and consent of the Senate” provided for in the Dodd-Frank Act, but through the President announcing that he was appointing Cordray as Director using the authority that the United States Constitution (Article II, sec. 2, clause 3) confers upon the President “… to fill up all Vacancies that may happen during the Recess of the Senate, by granting Commissions which shall expire at the End of their next Session ...”

Please see full newsletter below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Published In: Consumer Protection Updates, Elections & Politics Updates, Finance & Banking Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Venable LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »