If the CFPB tries to issue new mandates and regulations, they will be open to numerous challenges because of the flawed appointment of its first director, especially given the central role the director plays in the bureau becoming an independent agency, he said.
“The Constitution ensures accountability and transparency of agencies, and there would be several grounds for the CFPB to be challenged,” he said.
“President said today he wants to increase accountability in the private sector, but he wants to weaken accountability in the government sector, but that won’t work,” he said.
A Senate staffer, who have been close to the workings of the Cordray nomination, said, “Under the Dodd-Frank Act, it is clear that the CFPB's powers to regulate non-banks, its ‘new’ powers, are activated upon Senate confirmation -- not recess appointment -- of a Director.”
Portman: Cordray Appointment Will Not Change CFPB - HUMAN EVENTS