Domino Effect? How A Ruling On The National Labor Relations Board Could Cripple The Consumer Financial Protection Bureau
By Amanda Jabour Kowalski
A recent decision by the Court of Appeals for the D.C. Circuit has invalidated President Obama’s appointment of three members to the National Labor Relations Board (“NLRB”) and has once again called into question the constitutionality of the president’s appointment of Richard Cordray as Director of the Consumer Financial Protection Bureau (“CFPB”).
On January 4, 2012, the president made several recess appointments to fill vacancies at the NLRB and the CFPB, pursuant to his authority to make such appointments under Article II, Section 2, of the U.S. Constitution. Although presidents since George Washington have made recess appointments, President Obama’s appointments raised unique concerns, partly because of their political implications and partly because of the unusual circumstances surrounding the appointments. Specifically, it was
The D.C. Circuit case,
Although Noel Canning did not address the president’s appointment of the CFPB Director, the decision has strong implications for the agency and its existing rulemakings. CFPB Director Richard Cordray was appointed at the same time and under the same recess appointment authority as the members of the NLRB, and the D.C. Circuit opinion raises questions as to the impact of the case on the CFPB and the entities it regulates. Critically, as Kevin Petrasic and Michael Hertzberg’s
There is currently at least one challenge to Richard Cordray’s appointment in federal court,
Check back soon for another post addressing the potential impact a challenge to Richard Cordray’s appointment could have on CFPB rulemakings and CFPB-regulated entities.