Partial Ruling in Dodd Frank Case Confirms that Cordray 2012 Appointment was Illegal

Yesterday, the U.S. District Court of the District of Columbia confirmed that Richard Cordray’s 2012 recess appointment to head the Consumer Financial Protection Bureau was illegal, but his reappointment and confirmation in 2013 gave him the power to legitimize all of his previous decisions.

Sam Kazman, CEI’s general counsel, said, “Allowing Cordray to legitimize all of his previous decisions in one fell swoop, despite his being previously illegally appointed, is contrary to DC Circuit precedent and we plan to appeal this ruling.  We continue to await a ruling on the more important fundamental issue in this lawsuit—whether CFPB’s rogue-agency structure is constitutional.”