GOP Senators Continue Focus On Legality Of Cordray Appointment

Posted by Orb Staff on February 01, 2013 No Comments
Categories : Residential Mortgage

13219_cfpb GOP Senators Continue Focus On Legality Of Cordray Appointment Senate Republicans have introduced a bill that would prevent the Consumer Financial Protection Bureau (CFPB) from receiving funding from the Federal Reserve until the question regarding the legality of Richard Cordray's appointment to run the agency is resolved.

TheHill.com reports that three senators – Nebraska's Mike Johanns, Tennessee's Lamar Alexander and Texas' John Cornyn – introduced the bill in response to a Jan. 18 court ruling that declared President Obama violated constitutional law with his Jan. 4, 2012, recess appointments. Although the court ruling focused on recess appointments to the National Labor Relations Board, the president also put Cordray into office the same day with a recess appointment.

‘American democracy was born out of a rejection of the monarchies of Western Europe, anchored by limited government and separation of powers,’ says Cornyn. ‘We refuse to stand by as this president arrogantly casts aside our Constitution and defies the will of the American people under the guise of defending them."

Alexander adds that he does not have a problem with Cordray, but he is concerned with the agency's ‘lack of accountability’ and the process on how Cordray came into office.

President Obama re-nominated Cordray for the CFPB directorship, but there is little evidence that Senate Republicans will enable the nomination process to move forward. Sen. Mike Crapo, R-Idaho, told Fox Business Network that the GOP ‘won't move forward with any nominee’ to run the CFPB unless the agency is ‘restructured and reformed.’ Crapo states that the CFPB should be realigned so that its power structure is balanced by a board and not concentrated solely in the director's office. He also calls for congressional oversight regarding the agency's budget.

Register here to receive our Latest Headlines email newsletter




Leave a Comment