Venable partner John Cooney was quoted in a January 29, 2013 Bloomberg BNA article on last week’s ruling by the U.S. Court of Appeals for the District of Columbia Circuit which declared President Obama’s three recess appointments to the National Labor Relations Board unconstitutional. While not specifically addressed in the case, Richard Cordray, the director of the Consumer Financial Protection Bureau (CFPB) was part of the same group of recess appointments, calling into the question the legitimacy of his appointment.
Commenting on the ruling’s impact on Cordray and the CFPB, Cooney said, “Lawyers familiar with the recess appointment issue understood that a decision on the NLRB appointments would have implications for the CFPB. I assume the CFPB understood this as well and has a contingency plan and made a risk assessment.” Cooney added that CFPB-regulated firms would need to make a quick call on what the ruling means for a possible CFPB challenge and if the risks justified the rewards. “Regulated entities currently under investigation by the CFPB will have to make a policy decision on whether to cooperate with the CFPB, or raise a legal objection and bear the consequences of challenging the agency. That's the other risk assessment that has to be made,” he said.
Commenting on the ruling’s impact on Cordray and the CFPB, Cooney said, “Lawyers familiar with the recess appointment issue understood that a decision on the NLRB appointments would have implications for the CFPB. I assume the CFPB understood this as well and has a contingency plan and made a risk assessment.” Cooney added that CFPB-regulated firms would need to make a quick call on what the ruling means for a possible CFPB challenge and if the risks justified the rewards. “Regulated entities currently under investigation by the CFPB will have to make a policy decision on whether to cooperate with the CFPB, or raise a legal objection and bear the consequences of challenging the agency. That's the other risk assessment that has to be made,” he said.