June 27, 2014

2 views on recess appointment ruling and CFPB

June 30, 2014 – A key House member and CFPB's general counsel offered different views last week on the impact on CFPB of a Supreme Court ruling declaring invalid the president's "recess appointments" of three National Labor Relations Board members.

House Financial Services Committee Chairman Jeb Hensarling, R-Texas, issued a statement that the actions CFPB Director Richard Cordray took during his 18-month recess appointment – he was later confirmed to his post – are now in question, The Wall Street Journal reported. However, CFPB's general counsel issued a statement that CFPB wasn't part of the NLRB case and that the court's ruling makes no mention of the bureau of Cordray. The Hill also reported that Cordray, following his confirmation, affirmed his previous actions.

The high court said the NLRB appointments were not proper because they were not made when the Senate was in a recess period lasting at least 10 days. The Senate, at the time, separated its pro forma sessions by three-day periods.

Cordray, while first seated in a recess appointment, was confirmed by the full Senate in July 2013.