Sidestepping Congress, Obama names Cordray as Consumer Finance Chief

Sidestepping Congress, Obama names Cordray as Consumer Finance Chief

Using his executive authority with the Senate in recess, President Obama this week challenged Congressional foes of the newly created Consumer Financial Protection Bureau (CFPB) by naming Richard Cordray as its director.

The recess appointment, which some senators have suggested will be challenged in the courts, allows the agency to establish new regulations over financial institutions, putting into effect elements of the financial regulatory overhaul that was one of the administrations centerpiece achievements in Congress.

Mr. Cordray had been serving as the Ohio Attorney General and is widely respected by Republicans and Democrats. The Congressional objection to his nomination appeared to have more to do with the scope of the CFPBs regulatory powers and its relative independence from oversight by Congress. Senate Republicans had insisted on Congressional oversight for the agency and had attempted to block Cordrays nomination by holding pro forma sessions over the holidays.

The president also filled three vacant seats on the National Labor Relations Board (NLRB) with the recess appointments of two Democrats and one Republican. The appointments bring the nations top labor panel back to a full complement of five members.

Sharon Block, a Democrat, currently the deputy assistant secretary for congressional affairs at the U.S. Department of Labor and previously an aide to former Sen. Edward Kennedy (D-Mass.) on the Senates labor committee was one appointee. Terence Flynn, another appointee, is currently chief counsel to NLRB board member Brian Hayes is a Republican and was previously chief counsel for former NLRB board member Peter Schaumber.

Rounding out the appointments is Richard Griffin, general counsel for the International Union of Operating Engineers, who also serves on the board of directors for the AFL-CIO Lawyers Coordinating Committee.

Sen. Lindsey Graham (R-S.C.), who had vowed to block Senate confirmation of the nominees, said the recess appointments may impress union bosses, but will deliver yet another blow to job creation. He added that he will continue to do everything in my power to put the brakes on the NLRB as currently constructed.