January 2013

CFPB Watch quotes Jonathan Pompan on recess appointment ruling's effect on CFPB

1 min

CFPB Watch quoted Venable partner Jonathan Pompan on how the U.S. Court of Appeals for the District of Columbia’s ruling invalidating President Obama's three recess appointments to the National Labor Relations Board (NLRB) will affect the Consumer Financial Protection Bureau (CFPB). While not specifically mentioned in the ruling, the decision could impact the CFPB because its director, Richard Cordray, was appointed on the same day as the NLRB appointees.

Pompan said the ruling "provides a lot of leverage to Senate Republicans to extract structural changes in the Bureau." He added "That is where this will have the most potential long-term impact…. The consequences for the long-term structure of the Bureau could be profound."

Even though there is speculation that the ruling could potentially nullify previous regulatory victories for the CFPB, Pompan said it is unlikely that the administration will engage in any frantic maneuvering. "If one plays this all out, it is complicated. The administration and the CFPB are playing a complicated game of checkers. There are a lot of different variables that are still unknown, but they will continue to execute their game plan until they are absolutely forced to make changes," Pompan added.