CFPB Powers Could Be Invalidated Following Ruling On NLRB Recess Appointments

On January 25, 2013, the U.S. Court of Appeals for the D.C. Circuit ruled that President Obama's purported "recess appointments" to the NLRB last year are constitutionally invalid. It is critical to note that President Obama appointed Richard Cordray as Director of the Consumer Financial Protection Bureau (Bureau) on the same day he made the NLRB appointments, relying on the same precedent and justification. While the D.C. Circuit's ruling does not directly apply to Director Cordray's appointment, it will undoubtedly be asserted in pending (and perhaps future) challenges to the Cordray appointment—and to the Bureau's asserted exercise of its powers since his purported appointment.