In a move that could spark a legal challenge, President Obama plans to circumvent the Senate and use a recess appointment to name former Ohio Attorney General Richard Cordray the director of the Consumer Financial Protection Bureau, according to several media reports.
Obama plans to make the announcement during an appearance today in the Cleveland suburb of Shaker Heights, the reports said.
Last month, Senate Republicans blocked the confirmation of Cordray and have vowed to oppose any nominee to the position until Obama and Senate Democrats agree to structural changes in the agency, along the lines of those approved by the GOP-controlled House last year.
Presidents have a right to appoint people to executive positions while Congress is in recess but there have been disagreements over whether Congress actually is in recess even though its not formally meeting.
By having a permanent director in place, the CFPB will be able to regulate mortgage companies, payday lenders, debt collectors and other financial companies.
Credit union executives, including Wright-Patt CU President/CEO Doug Fecher, have complained that they face a heavy amount of federal regulation but are competing against entities such as payday lenders who don’t have such compliance costs.