D.C. Circuit Hands The CFPB A Setback?

At the end of last week, the U.S. Court of Appeals for the District of Columbia Circuit issued its decision in Noel Canning v. National Labor Relations Board, holding that President Obama's recess appointments to the National Labor Relations Board ("NLRB") were invalid.¹ The rationale of Noel Canning also calls into question the validity of Richard Cordray's recess appointment to Director of the Bureau of Consumer Financial Protection (the "Bureau") and many of the Bureau's activities to date. Bureau activities that are now uncertain include several final rules that the Bureau has issued and supervisory actions that the Bureau has taken. Noel Canning could also prompt future reforms to the Bureau's governance or funding.