WASHINGTON — Republican senators warned the director of the Consumer Financial Protection Bureau that they believed his recess appointment was invalid and that new agency rules would be challenged in court, leaving businesses uncertain about what rules to follow.
Republicans were so upset with President Barack Obama’s appointment of Richard Cordray, right, last month that one boycotted the director’s Senate Banking Committee appearance Tuesday and another promised never to work with the president on pending nominations that need the Senate’s approval.
The GOP had been blocking confirmation votes on any nominee to direct the agency until its powers were limited and had prevented the Senate from formally going into recess for more than three days to try to prevent a recess appointment.
“I can’t imagine how anybody could maintain under the circumstances that your appointment and your service is valid,” Sen. Mike Johanns, R-Neb., told Cordray at Tuesday’s hearing.
Cordray said he and his staff have discussed the potential for legal challenges to the appointment: “I have been appointed as director. There may be issues about that … but I now have legal obligations I’m supposed to carry out for this bureau. I’m going to do that.” Los Angeles Times; Bloomberg News photo
