Republicans say consumer chief controversy will hurt businesses

Reporting from Washington—
Republican senators warned Richard Cordray, the director of the Consumer Financial Protection Bureau, that they believe his controversial recess appointment is invalid and legal challenges will lead to uncertainty for businesses about whether agency rules would be invalidated.

“I can’t imagine how anybody could maintain under the circumstances that your appointment and your service is valid,” Sen. Mike Johanns (R-Neb.) told Cordray on Tuesday at a Senate Banking Committee hearing.

“And I can’t imagine then … how the actions you are taking will be upheld and I think that’s a very, very serious consequence for our nation,” Johanns said.

Sen. Bob Corker (R-Tenn.) added, “There’s no question there’s going to be constitutional challenges” to Cordray’s appointment this month by Obama, which will add to the uncertainty faced by businesses in the struggling economy.

L.A. Times
1/31/12