Standing Up for Consumers
By John Cordray, Reader Supported News
05 January 12
Today, I was appointed by President Obama to serve as the first Director of the Consumer Financial Protection Bureau. I am honored by this opportunity to continue my work on behalf of consumers. And I am energized by the responsibilities and challenges facing the Bureau.
He is a true believer.
The appointment of John Cordray is illegal on two counts.
1) Obama declared this "a recess" appointment. Congress was not in recess. Obama is entitled to his own opinions, but he is not entitled to his own facts. He can not make this "a recess appointment" by just declaring it so. Congress has to actually be in recess in order for Obama to lawfully make a recess appointment.
2) The Frank-Dodd act, which created this unnecessary office, specifically requires that the appointee be approved by the senate. It is a weird little oddity in the legislation that is most likely due to sloppy legal work on the part of the legislations drafters. But it is there none the less. The Frank-Dodd act does not allow for recess appointment.
More importantly the “recess” appointment of Cordray doesn’t solve the President’s problem. The Dodd-Frank Act is very clear, even a law professor can probably understand this section, that authorities under the Act remain with the Treasury Secretary until the Director is “confirmed by the Senate”. A recess appointment is not a Senate confirmation. Now don’t ask me why Dodd and Frank included such unusual language, they could have just given the Bureau the new authorities, but they didn’t. So even with this appointment, the CFPB won’t be able to go after all those non-banks, like the pay-day lenders and check-cashiers that caused the financial crisis (oh wait, those industries didn’t have anything to do with the crisis).(Emphasis is mine - Syrah)
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