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David Arkush

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President Obama's Next Moves on Leadership for the Consumer Financial Protection Bureau

Posted: 12/14/11 10:50 PM ET

As expected, last week Senate Republicans blocked President Obama's nomination of Rich Cordray to lead the new Consumer Financial Protection Bureau (CFPB). They continue to hold the agency hostage, taking the unprecedented step of blocking its leadership unless the agency is first weakened.

Still, there were a few small signs that the Republicans are feeling some heat over their stand against American consumers. On the eve of the vote, Ohio Senator Rob Portman said that even if the Republican filibuster held, he didn't think Cordray's nomination was dead and he wanted to work toward a compromise. And Maine Sen. Olympia Snowe surprised everyone by declining to vote at all. She cited the potential perception of a conflict of interest due to the fact that the CFPB will have jurisdiction over her husband's business. What's odd is that Sen. Snowe was actively involved in the 2010 Senate debate over creating the CFPB, and she even sponsored a successful amendment to weaken the agency. For some reason, it didn't occur to her until the eve of an uncomfortable vote that she should recuse herself from such matters. Together with Massachusetts Sen. Scott Brown's November announcement that he would support Cordray, that makes three Republican senators who have shown signs of strain.

The key question is, what's next for the Cordray nomination? Will President Obama press his advantage and win the nomination, or will the effort stall?

The president has two good options. One is to appoint Cordray during the next Senate recess, which means by January 3. The other is to continue holding votes on Cordray, forcing the intransigent Republicans to face increasing public pressure until they give in (or the president makes a recess appointment). Even though President Obama said after the vote that he won't "take any options off the table," there's little reason so far to think he's charting either of these courses. But he should.

First, let's do a quick recap of the law on a recess appointment. Then we'll talk politics.

The Law

The president has two legal paths to a recess appointment in the coming weeks. First, as I've written multiple times, the House of Representatives claims that it can hold the Senate open to block a recess appointment, but the House can't do that without the president's consent. If the House and Senate disagree on whether to adjourn, the president can adjourn them both.

Second, President Obama can appoint Cordray when the current session of Congress ends, which must happen by January 3 (the 20th Amendment requires that annual congressional sessions begin on January 3). In between the old and new sessions the Senate must be in recess, even if only for an instant. Obama would not be the first president to make an appointment during this type of recess. On December 7, 1903, President Theodore Roosevelt appointed 169 military officers during a recess that appears to have lasted no more than an instant. At noon on that day, the Congress ended an extraordinary session and began a regular session, and that's when Roosevelt said his appointments took place. Obama can do the same on January 3.

The Politics

So the question isn't whether the president can appoint Cordray, but whether he will do it. He certainly should. To appoint Cordray would benefit America families and Obama's political campaign. It's a good deal for a sitting president.

Some people think the Obama campaign will delay moving quickly on Cordray so that the president can enjoy the benefits of the fight longer. It fits right in with his new narrative about fighting for a fair economy. But the president doesn't need to sit on the Cordray nomination to keep pushing the Wall Street vs. Main Street line. In fact, that would be a mistake. When you're winning, you need to press for victory, not let up. Then when you win, you pick another good fight quickly. You keep the opposition off balance. To allow the Cordray nomination to linger would give the opposition the chance to regroup, dig in, and fight back.

A failure to move quickly on Cordray would also expose the president to the criticism that he's not actually taking a strong stand for American families. That criticism would muddle the message that the White House is trying to send: "We're on your side, America. The Republicans are with the big banks."

To be clear, one good course of action involves prolonging the Cordray fight: holding a series of votes to keep the pressure on Senate Republicans. Those votes could yield real policy benefits in addition to whatever they do for political campaigns. If enough Republicans were to give in and vote to confirm Cordray, he'd have a 5-year term. In contrast, a recess appointment would last only through the next congressional session, meaning no more than one year, though he could be reappointed.

Right now, the signs aren't good for a recess appointment or a series of votes. Media outlets have reported that Sen. Majority Leader Harry Reid is unlikely to make House Speaker Boehner try to hold the Senate open. In anticipation of Boehner's refusal, Reid likely will hold it open without attempting to adjourn. And if Senate Democrats were planning to hold a series of votes on Cordray, they should have started already.

Some people I've spoken with are concerned that the president will avoid a recess appointment for fear of being accused of doing something unjustified or inappropriate. This would be a mistake.

First, the administration should dismiss out of hand the view that perhaps the president should avoid using his constitutional power to adjourn the Congress merely because it has never been used before. The reason we're having this conversation in the first place is that the House is engaged in an unprecedented bid to block a presidential nomination by holding the Senate open -- something that isn't constitutional. The House has no business meddling in nominations, which the Constitution assigns to the president and the Senate; and the House has no authority to hold the Senate open without the president's consent.

Also, the mechanics of making the appointment and responding to accusations aren't complicated. For example, the White House could set up a recess appointment as follows: The Senate adjourns and goes home for the holidays when the House does. The president makes a recess appointment. If the Republicans accuse the president of wrongdoing, the White House can respond by saying,

What a strange suggestion. Under the Constitution, one house of Congress can't hold the other in session alone. The president must agree. It's a balance-of-powers issue. In this case -- where House Republicans want to hold the Senate open to block a consumer agency from protecting American families -- the president does not agree.

If the president pursues the other recess appointment path -- the one in which Majority Leader Reid technically keeps the Senate open during the holidays and Obama appoints Cordray between the old and new congressional sessions on January 3 -- then the White House can respond to allegations that the president is exploiting a technicality as follows:

On January 3, the 112th Congress ended and the 113th Congress began. Between the two was a recess, and the president appointed Rich Cordray during that recess. Republicans claim that this recess was a meaningless technicality. But their argument is no different. They claim that the Senate was technically in session for the past two weeks because a single senator showed up every few days to flick the lights on and off. In reality, the Senate was on recess. The Senators weren't here doing business. They certainly weren't available to vote on nominations. They were home for the holidays.

The Republicans can't have it both ways. Either we dispense with all the technicalities and the Senate was on recess for the past two weeks -- in which case the president appointed Cordray during that recess -- or we follow the letter of the law and the president appointed Cordray during the recess between sessions of Congress.

By the way, does anyone doubt that if the circumstances were reversed -- if the Republicans stood to win something by arguing that there technically will be a recess on January 3 -- they would not hesitate to make that argument?

Finally, the White House shouldn't forget that absurd and hyperbolic attacks are inevitable. They have been a constant ever since Obama took office and congressional Republicans vowed to waste four years doing little but trying to hold his presidency to a single term. Under those circumstances, there is no sense in President Obama compromising his positions in an attempt to blunt criticism.

He should keep up the fight.

 

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02:49 AM on 12/16/2011
Unfortunately Obama does not possess the required backbone to do what needs to be done. He cannot stand to be seen as confrontational and the Republicans exploit this weakness continuously. Even if Obama should win re-election I look forward to four more years of his kowtowing to the Republicans. I almost want to vote against just to avoid the continuation of his appeasement presidency.
nothingchanges
too soon old, too late smart
10:47 PM on 12/15/2011
The underlying question is not being addressed.

What do the Republicans WANT.

Over 95% of Republicans in Congress have signed a pledge to Grover Norquist a man who has stated publicly and for the record. ""I don't want to abolish government. I simply want to reduce it to the size where I can drag it into the bathroom and drown it in the bathtub."

Doesn't sound very confusing to me, Republicans WANT government to fail, and they are actively working to accomplish that goal.

With that in mind, either the Democrats have to develop a backbone and fight back using every means necessary, or they get branded with words like collusion, sold out, or ineffectual.

The sad thing is that no one seems to be doing anything to help the people or the country as a whole, too busy covering their own butts, trying to get re-elected.

FDR was re-elected 3 times, by working FOR the middle class, regardless of the political costs.

Why can't Democrats learn from his example?
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09:54 PM on 12/15/2011
The President prefers the tpublicons brand of bi-partisanship - everything tilts toward the right.
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sandals
06:35 PM on 12/15/2011
I say go for the recess appointment Bush did it for the UN Ambassador and we got BOLTON!
But the only reason why he isn't be confirmed is because the GOP/TP don't want the department even though it is already law and the Heck with the Middle Class
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DHFabian
06:24 PM on 12/15/2011
Remember back to what Obama said during the campaign -- There is nothing he can accomplish alone. It takes us, We the People, standing up, getting loud, making it clear what the public wants. We cannot afford to sit by and wait, hoping for the best. So, let's do it. Get loud. Organize, call, write, email -- contact the president, vice president, your legislators. And don't stop!
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06:03 PM on 12/15/2011
...sorry not this guy. He has our democracy in full-throttled reverse.
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sandals
06:33 PM on 12/15/2011
Really so where were you under BUSH you had no problems when he sent us into two wars unfunded, medicare part d not funded no child left behind not funded.
Tax cuts not paid for, the list goes on so I will stick with President Obama looking at what your side has to offer isn't much of anything but helping the 1% with more tax cuts
05:40 PM on 12/15/2011
President Obama should appoint as many progressives as he can to as many positions as possible during the Jan. 3rd recess! He has to use every executive power to its absolute maximum effect and expand those powers wherever he can. We are in a constitutional crisis here! The GOP Cronies in the Congress & Supreme Court are conspiring for absolute power for the 1%; amazingly they are getting away with it! Obama needs to push back with abandon to save this Democracy! The checks & balances system cannot work if the executive branch is reluctant to throw its weight onto the scales of justice while the GOP shamelessly tips them against the common man!!!
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Phil Van Voorhis
05:04 PM on 12/15/2011
Mr. President. Become the President I voted for. Less talk. More action. Stand up to these corporatists and make these appointments.
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BobHiggins
Living on the brink of was.
04:56 PM on 12/15/2011
As you point out the president has the power to convene or adjourn either or both houses as he judges necessary.

Article 2 Section 3:

He shall from time to time give to the Congress Information of the State of the Union, and recommend to their Consideration such Measures as he shall judge necessary and expedient; he may, on extraordinary Occasions, convene both Houses, or either of them, and in Case of Disagreement between them, with Respect to the Time of Adjournment, he may adjourn them to such Time as he shall think proper; he shall receive Ambassadors and other public Ministers; he shall take Care that the Laws be faithfully executed, and shall Commission all the Officers of the United States.
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DHFabian
06:39 PM on 12/15/2011
What the president has actually done on a number of occasions was set his own ego aside, waited, and let the right wing hang themselves. This isn't a fast process, and people need to understand this. Obama has been setting the groundwork for reverse 30-some years of appalling corporatist policies that have brought the US to this miserable point. I think his strategy to date has been to let the public see for itself (regardless of any right-wing propaganda) the extremes to which the Republicans will go to crush the Obama administration. It's hard NOT to see that today's Republicans are so determined to crush the Obama administration that they're willing to destroy the entire United States in the process.

On point after point, Obama has, indeed, kept the promises he made, often without fanfare. As hard as it is, I think we'll have to let the drama of the moment play itself out to understand the president's reasoning. What I can say is that I've watched US politics since the Kennedy administration, and President Obama is unique in that he honestly appears to care far more about America than his own career.
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BobHiggins
Living on the brink of was.
11:38 PM on 12/15/2011
And after his administration is crushed under the combined weight of thirty years of disastrous republican policy, crony capitalism, unemployment and war we can take pride in the fact that we finally saw it for ourselves?
04:49 PM on 12/15/2011
Is the President and his White House staff readng this? What could possibly be a reasonable excuse for not making all the recess appointments needed? (Possible on January 3, even if there is no recess!)
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Neal Feldman
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10:30 PM on 12/15/2011
Especially making recess appointments to fill all the vacant seats on the federal benches?
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Dinosaur David B
10:42 AM on 12/15/2011
If he does any of these things, it will be out-of-character. Obama never plays hardball. He's always slow-pitch.
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MinneMike
I am 1% deal with it
11:28 PM on 12/14/2011
There will be no recess appointment. Republicans will keep Congress in session during the break. Best get your hankie out...
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Robert Breedlove
Curmudgeon of Lucidity
09:45 AM on 12/15/2011
You are in for a big disappointment, Obama, by law, can(and I think he will) adjourne both the House and Senate and appoint a whole slate of judges, chairmen and heads of agencies. This obstructionist, regressive Tea Bagger GOP is going down, hard, the public is sick of their supporting the 1% and not the rest of us. When 50% of the people in this country have been pushed below the poverty line the "Let them eat cake" plutocrats should be very worried, indeed.
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04:47 PM on 12/15/2011
Watching politics is my hobby...strange hobby but I am old and don't have a lot to do but email all my friends and rant every time the republicans do things to hurt America and it's real people. After 15 years, I may not get out much but I do know a lot of people, people that have real lives and don't keep up as well as I do. I am certainly one of those that has been pushed way below the poverty line, I can live with that, I know how to be thrifty and don't have a lot of children to feed. But seeing what these people have done to my country makes me FURIOUS. Furious enough to make sure everyone knows what I see every day even if it is just in this venue. Before I go off half cocked, there's very little I take on faith from either party. I check out the facts as much as is possible and then do my ranting.
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MinneMike
I am 1% deal with it
05:35 PM on 12/15/2011
Afraid you are wrong. Congress will remain in session through the break and Obama will not be able to make a recess appointment.
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Phil Van Voorhis
05:05 PM on 12/15/2011
No way. They're all going to Vail for Xmas.