U.S. Rep. Gary Peters today applauded President Obama’s recess appointment of Richard Cordray to head the newly formed Consumer Financial Protection Bureau .
Obama’s decision was immediately denounced by some conservative groups because, technically, Congress is not on recess.
The CFPB was created as part of the Frank-Dodd Wall Street reforms and Consumer Protection Act which Peters, a Bloomfield Township Democrat, helped write and pass into law as a member of the House Financial Services Committee in July 2010.
The CFPB’s primary job is to oversee the financial sector with a major focus on protecting Americans from abusive practices employed by too many payday lenders, debt collectors, mortgage companies and other financial institutions.
After Senate Republicans repeatedly blocked the appointment of Elizabeth Warren, who helped create the CFPB post, Obama nominated former Ohio Attorney General Richard Cordray to head the agency. Cordray has a track record as a dogged AG who has earned praise for his consumer protections credential s from Democrats and Republican.
But the Senate GOP, hoping for a rewind of the 2010 approval of the Dodd-Frank bill, have refused to accept any nominee unless Congress is granted oversight of the CFPB.
“Americans deserve common sense protections from the abusive lending practices of many pay-day lenders, debt collectors and mortgage giants, that’s why I stood with President Obama to pass these needed reforms,” said Peters, who faces a tough August primary contest against fellow Democratic Rep. Hansen Clarke of Detroit. “There are too many families in Michigan struggling during these tough economic times and they can’t afford any more obstructionist tea party tactics from Senate Republicans. I’m glad President Obama is making this recess appointment and I’m looking forward to working with Mr. Cordray to help folks in the Greater Detroit region.”
In addition, Peters is backing Obama’s decision to make three recess appointments to the National Labor Relations Board, which rules on major labor-management disputes.
The president is also set to appoint Sharon Block, Terence Flynn and Richard Griffin to the NLRB, ending “months of obstruction and red tape” from Senate Republicans, Peters said.
Again, these appointments could also face a court challenge due to assertions that Congress, while not scheduled to meet for some time, is not in recess, according to procedures followed in the final days of 2011.
Supporters of Obama’s decision say the NLRB recess appointments were necessary because there are only two members on the board. Two members are required to have a quorum and board member Craig Becker’s term is set to expire this week.
