As we discussed earlier here and here), in light of the Canning decision striking down the NLRB appointments, questions swirl as to the propriety of President Obama's appointment of Richard Cordray to head the CFPB. Since the decision, there have been some interesting developments:
- Senator Alexander dropped a bill in the hopper designed to prohibit funding for certain activities of the CFPB until the CFPB has a director in place after following the required steps.
- Republican opposition to Richard Cordray's nomination remains strong, at least publicly.
This is setting up an interesting dynamic between Republicans and bankers, because we understand that some in the banking community, including the American Banker's Association, may not push hard against Mr. Cordray's nomination. Members of the banking community may believe that they are stuck with the CFPB and some view Mr. Cordray as a better option than the most likely alternative.
It will be interesting to see whether Cordray's upcoming, renomination fight leads to a broader fight over the CFPB's power and reach or whether some members of the banking community will quietly push to accept Cordray as the devil it knows.
What say you? Should the appointment be thrown out, or is it better to stick with what is known versus what may come?
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