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ARTICLE · 04 FEBRUARY 2013

Canning Puts CFPB’s Powers In Doubt

Waller Lansden Dortch & Davis
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The D.C. Circuit issued its much anticipated opinion in Canning v. NLRB, holding that President Obama’s "recess" appointments to the NLRB were invalid because there was no actual recess under the Recess Appointments Clause of the Constitution.

United StatesConsumer Protection
Christopher Driskill
Christopher Driskill

On Friday, January 25, the D.C. Circuit issued its much anticipated opinion in Canning v. NLRB, holding that President Obama's "recess" appointments to the NLRB were invalid because there was no actual recess under the Recess Appointments Clause of the Constitution. See our earlier post on the decision.

The Canning opinion could have a profound impact on the CFPB because President Obama appointed CFPB Director Richard Cordray on the same day that he appointed the NLRB members discussed in Canning.

Perhaps seeing the writing on the wall, President Obama re-nominated Mr. Cordray one day before the D.C. Circuit decided Canning.  However, if the Senate does not confirm Mr. Cordray (a likely outcome due to Republican opposition), the CFPB may once again be without a director.

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