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Thursday, January 05, 2012

Richard Cordray Has Absolutely Zero Authority

Perhaps Obama should have noticed this small provision in the Dodd-Frank bill before he made a "recess appointment" of Cordray even though the Senate is not in recess.

But clear beyond the slightest doubt is the language of the statute (itself unconstitutional on any number of grounds not relevant here). As my colleague Mark Calabria wrote yesterday, “authorities under the Act remain with the Treasury Secretary until the Director is ‘confirmed by the Senate.’” A recess appointment, even if it were constitutional, is not a Senate confirmation. There is simply no wiggle room in that language that gives Cordray any authority, as litigation will soon make plain.