President Obama lured angry statements from Republicans still on break by announcing his recess appointment of Richard Cordray to head the Consumer Financial Protection Bureau. Senate Republicans have already rejected Cordray's appointment because they aren't wild about the bureau which was created by the controversial Dodd-Frank financial reform law.
The president announced his appointment in Ohio, Cordray's home state - the swing state where he's well liked after serving as attorney general.
Democrats say Cordray needs to be in place leading the bureau to protect the middle class and ensure all Americans play by the same financial rules.
President Obama says, "Right away he'll start working to make sure millions of Americans are treated fairly by mortgage brokers, payday lenders and debt collectors. In fact, just this week, his agency is opening up a simple, 1-800 number you can call to make sure you're getting a fair deal on your mortgage, and hold banks and brokers accountable if you're not."
The White House calls the president's move a "no brainer." Republican leaders call it a dirty "power grab."
Senate Minority Leader Mitch McConnell:
The CFPB is poised to be one of the least accountable and most powerful agencies in Washington. Created by the deeply flawed Dodd-Frank law, it is subject to none of the checks that independent agencies normally operate under, and will have an unprecedented reach and control over individual consumer decisions.
Earlier this year, 44 of my Senate Republican colleagues and I served notice that we will not confirm any nominee as director, regardless of party, until structural changes are made to make the bureau accountable to the American people—and more transparent. Our request was met with silence from the administration. As a result just last month the Senate rejected Cordray’s nomination.
Congress has a constitutional duty to examine presidential nominees, a responsibility that serves as a check on executive power. But once again, the President has chosen to circumvent the confirmation process.
Speaker John Boehner
This is an extraordinary and entirely unprecedented power grab by President Obama that defies centuries of practice and the legal advice of his own Justice Department. The precedent that would be set by this cavalier action would have a devastating effect on the checks and balances that are enshrined in our constitution.
This position had not been filled for one reason: the agency it heads is bad for jobs and bad for the economy. It’s clear the President would rather trample our system of separation of powers than work with Republicans to move the country forward.
This action goes beyond the President’s authority, and I expect the courts will find the appointment to be illegitimate.