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David Arkush

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President Obama Appoints Cordray to Head CFPB Over Republican Obstruction

Posted: 01/04/12 05:47 PM ET

This morning President Obama appointed former Ohio Attorney General Richard Cordray to head the Consumer Financial Protection Bureau. It's was the right move, and it's about time.

In December, Senate Republicans blocked a vote on Cordray, who has majority support. In an unprecedented move, Republicans said that Cordray was a fine candidate, but they were holding his nomination hostage because they wanted to change the underlying law and weaken the agency. In another unprecedented move, Republicans claimed that the House of Representatives (which is Republican-controlled) could hold the Senate (controlled by Democrats) in session to block recess appointments.

Today, Obama used his constitutional power to make a recess appointment and cut through all this nonsense.

The big banks and their allies in Congress are in a tizzy. They're steamed. But not for the reasons they say. They claim the president didn't have authority to appoint Cordray, but he did. For example, they say a three-day recess is too short for a recess appointment. But this is really a five-week recess, with some phony gavel-banging thrown in by a single Senator once every three days. In reality, the Senate is out of town. Even if it's a three-day recess, Cordray's appointment is legal. The only court to have looked at the question recognized the obvious: the Constitution "does not establish a minimum time that an authorized break in the Senate must last to give legal force to the President's appointment power under the Recess Appointments Clause." Two past presidents -- Harry S. Truman and Theodore Roosevelt -- made recess appointments during recesses of three or fewer days. And let's not forget: The Republicans didn't have the power to keep the Senate in pro forma sessions anyway.

What's the real reason the big banks and the Republicans are so mad? Because they lost this battle in the war over America's economy. They want big banks to be above the law, to write their own rules, and to compete, if at all, principally on the basis of who scams their customers the most. (The consumer financial sector rotted several years ago, plain and simple.) They want the same system we had before 2008 -- in which big banks raked in billions in profits and government handouts while the economy crashed and millions of people lost their jobs and were thrown out of their homes.

The CFPB and Cordray's appointment are victories for those who have something else in mind. Most people want to get the financial sector back on track, to build a fair economy in which everyone plays by the rules and -- call us old-fashioned -- to have businesses compete to provide consumers value. If you're one of those people, you won a big victory today.

 

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HUFFPOST SUPER USER
rainkitty
Lively up yourself.
09:44 PM on 01/05/2012
"In an overt attempt to prevent the President from exercising his authority during this period, Republican Senators insisted on using a gimmick called “pro forma” sessions, which are sessions during which no Senate business is conducted and instead one or two Senators simply gavel in and out of session in a matter of seconds. But gimmicks do not override the President’s constitutional authority to make appointments to keep the government running.
Legal experts agree.
In fact, the lawyers who advised President Bush on recess appointments wrote that the Senate cannot use sham “pro forma” sessions to prevent the President from exercising a constitutional power."
http://lawprofessors.typepad.com/securities/2012/01/obama-appoints-cordray-as-cfpb-director.html

"The nonpartisan Congressional Research Service said in a report last month the Constitution did not specify how long the Senate must be away for recess appointments to be made but Republicans pointed to a 1993 Justice Department legal brief that said they had to be away longer than three days.
One law professor said that brief wrongly referred to the constitutional requirement that the two chambers have the approval from one another to break for more than three days and that the courts will likely be hesitant to intervene now.
"There is no minimum time needed to trigger the president's recess appointment authority," said Catholic University Columbus School of Law professor Victor Williams, adding that he doubted the courts would look favorably on a legal challenge."
http://tinyurl.com/7ekpx6g
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HUFFPOST BLOGGER
Eliot Daley
12:06 PM on 01/05/2012
In my own post today ("Two Cheers for Bipartisanship") I applaud this appointment as hoped-for evidence that President Obama has at long last begun to look less like Mister Rogers and more like Vince Lombardi in the pursuit of his legitimate goals. The historical review I cite shows that many and perhaps most of the important advances in our society have taken place by ignoring the ideal of "bipartisan cooperation" and exercising strong leadership in the face of hostile opposition.
01:43 AM on 01/05/2012
What does the Consumer Financial Production Agency really do and why would anyone be against it?

Here's a good overview of what's really going on.

http://thebottom99percent.com/heres-why-the-gop-is-ranting-over-the-new-consumer-agency/
07:14 PM on 01/04/2012
Great, I wish there could be more like neutralizing the Republican control of Financing the departments like the SEC, CFTC, and FBI to go after the scammers and banksters who need to be thrown in jail.
However, we, the people need to fix it, with getting control away from the Republicans by voting for a minority presence of the "Party of NO" out of the House and reducing the US Senate republicans down to less than 40, to stop the filibuster crap keeping the country in the toilet.
HUFFPOST SUPER USER
Jackie Taylor
12:24 AM on 01/05/2012
The only one who's keeping the country in the toilet is Obama. Wise up! Has anyone ask if what he's doing is legal? He's not only bypassing the GOP, he's doing it to the whole Congress. For the life of me, I can't see how any of you can think this guy is good for our country.
06:42 PM on 01/04/2012
Finally!