While the CFPB has not yet issued a formal written statement about the impact of the D.C. Circuit’s recent opinion in Canning v. NLRB on the Bureau, the Wall Street Journal reported in its weekend edition that a CFPB spokesperson has said that the Bureau “is not a party in the case decided today and the court’s ruling has no direct effect on the Bureau.”… Continue Reading

Five-time “Jeopardy!” champion Richard Cordray is now facing a different kind of jeopardy.   The validity of his recess appointment on January 4, 2012 as CFPB Director is under a dark cloud as a result of last Friday’s  decision by the U.S. Court of Appeals for the D.C. Circuit holding that the President’s contemporaneous recess appointments of three National Labor Relations Board members violated the U.S.… Continue Reading

Richard Cordray was renominated today by President Obama to serve as CFPB Director for a five-year term.  The President’s recess appointment of Mr. Cordray only allows him to serve as CFPB Director until the end of this year.

Instead of waiting until later this year to renominate Mr. Cordray, the President may have decided to act now because of concerns about the outcome of  the case pending before the U.S.… Continue Reading

The CFPB has filed a motion to dismiss in State National Bank of Big Spring, Texas, et al. v. Geithner, et al., the case currently pending in federal district court in Washington, D.C. that includes a challenge to President Obama’s recess appointment of Director Cordray.  

The case was originally filed in June 2012 by State National Bank of Big Spring, Texas and two non-profit organizations in the metropolitan Washington, D.C.… Continue Reading

We have previously written about a series of cases challenging President Obama’s recess appointments of three individuals to the National Labor Relations Board because of the potential implications of those cases on the validity of President’s recess appointment of Richard Cordray as CFPB Director. The cases involve challenges to the NLRB’s authority to take various actions based on the alleged invalidity of the NLRB appointments.… Continue Reading

Recently a government watchdog organization known as Judicial Watch obtained, via a Freedom of Information Act request, a large number of documents about Richard Cordray, President Obama’s choice as Director of the CFPB. Among the more than 200 documents disclosed was an internal CFPB e-mail entitled “Weekly Message: and dated February 6, 2012, in which Mr.… Continue Reading

Until someone has standing to challenge President Obama’s recess appointment of Richard Cordray as Director of the Bureau, people with an interest in the issue have been following challenges to Obama’s three contemporaneous recess appointments to the NLRB. Last week, in the first of two cases making such a challenge, Judge Amy Berman Jackson avoided deciding the constitutional question, which she characterized as a “political dispute” without invoking the political question doctrine, and relied instead on procedural and substantive labor law grounds.… Continue Reading

Recently, 38 Republican Senators signed a document in which they vowed to submit an amicus brief in support of litigation challenging President Obama’s appointments of Richard Cordray and the three new members of the NLRB. Last month, we reported on a case challenging the NLRB appointments that is pending in the U.S.… Continue Reading

Shortly after the President appointed Richard Cordray and several members of the NLRB through “recess” appointments, Alan Kaplinsky predicted on this blog that there would be litigation over the validity of the recess appointments first with regard to the NLRB, simply because it was likely to result in a “case or controversy” before anything involving the CFPB. … Continue Reading

Two days after President Obama’s January 4 recess appointments to the NLRB and the CFPB, DOJ’s Office of Legal Counsel (“OLC”) issued a 23-page opinion (not publicly released until January 12) on the legality of those appointments (the “Opinion”). Written against a backdrop of pro forma Senatorial sessions which began in 2007 in the Bush administration and continue during the current administration, the Opinion addresses two issues: (1) whether the President had authority to make recess appointments during the recess that included January 4, 2012, and (2) whether the pro forma sessions disabled him from making such recess appointments.… Continue Reading