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Court ruling raises questions about CFPB director appointment

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The U.S. Court of Appeals for the D.C. Circuit held this week that President Obama's recess appointments to the National Labor Relations Board are unconstitutional, according to news reports. The legal community suggests the decision could also impact the Consumer Financial Protection Bureau, given its Director Richard Cordray also achieved his post by recess appointment. MarketWatch has more on what the decision could mean for the bureau.

Todd Zywicki, a professor at George Mason University, said the decision will help the Texas community bank’s case because its challenge to Cordray’s appointment is identical to the successful NLRB appointment challenge. "The appeals court said that Congress was not in recess so these appointments could not be made,” he said. “That will help the suit."

Source: MarketWatch
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