Hensarling Bars Cordray From Testifying Before House Committee

Posted by Orb Staff on April 23, 2013 No Comments
Categories : Residential Mortgage

13704_richardcordray_square.jpg Hensarling Bars Cordray From Testifying Before House Committee The chairman of the House Financial Services Committee has barred Richard Cordray from testifying before the committee, stating that Cordray cannot legitimately claim to be the director of the Consumer Financial Protection Bureau (CFPB).

The Wall Street Journal reports that Rep. Jeb Hensarling, R-Texas, is citing a recent court ruling that declared the Jan 4., 2012, recess appointments made by President Obama to be unconstitutional. Cordray received a recess appointment that day, although the court ruling in question focused on appointments to the National Labor Relations Board and did not specifically cite the CFPB.

Hensarling, noting that the Obama administration is appealing the case to the U.S. Supreme Court, says that unless the Supreme Court rules in his favor, Cordray ‘is not the director of the CFPB.’ Hensarling adds that Cordray would be welcome before his committee if his CFPB directorship was confirmed by the U.S. Senate.

Rep. Maxine Waters, D-Calif., protested Hensarling's decision, stating that ‘no court has addressed the legitimacy’ of Cordray's appointment. Cordray is scheduled to testify today before the Senate Banking Committee.

A CFPB spokesperson did not comment on Hensarling's comments, adding that the court's ruling on the constitutionality of the recess appointment ‘has no direct effect’ on the agency.

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