CFPB's rules are valid because I say so: Richard Cordray Ratifies CFPB's Actions Prior to Senate Confirmation

This blog has been covering the ongoing challenges to CFPB director Richard Cordray's authority here, here, and here. The crux of the challenge is that President Obama's decision to recess appoint Richard Cordray in January 2012 without confirmation by the United States Senate was unconstitutional. These challenges call into question the validity of actions taken by the CFPB such as certain regulations and enforcement orders. Over the summer, as part of a deal on confirmation of several appointees, the Senate finally confirmed Richard Cordray to head the CFPB. With his confirmation by the Senate, there is no longer any question regarding the CFPB's authority to execute its statutory mandate. Nevertheless, some continue to argue that all of the CFPB's actions taken prior to Richard Cordray's confirmation are invalid and unconstitutional. In response, on August 27, 2013, Richard Cordray published a statement claiming all actions taken prior to his confirmation are valid, which is consistent with President Obama's original decision to recess appoint him. The United States Supreme Court has already agreed to hear a challenge that will determine the validity of Mr. Cordray's original recess appointment. This means there could still be questions about the CFPB's actions, and the legal effect of his statement on August 27. We will continue to monitor this since it will have important implications for the validity of CFPB actions.  

The material in this blog is not intended, nor should it be construed or relied upon, as legal advice. Please consult with an attorney if specific legal information is needed.

- John Lande