The U.S. Supreme Court agreed on Monday to hear an appeal by the National Labor Relations Board involving the Noel Canning case and the legitimacy of President Obama’s recess appointments to the board last January.
President Obama used his power of recess appointments last January to install three members to the five-member NLRB and to appoint CFPB Director Richard Cordray to the position.
Senate Republicans, however, said the chamber operated in pro forma sessions, meaning the chamber was not in recess and that all appointments to both the NLRB and CFPB were subject to confirmation by the Senate. Appeals courts have ruled that the appointments are not valid, but the Supreme Court will make the final decision in October, USA Today reports.
After Obama made the appointments, bottling company Noel Canning said the NLRB decision against it was invalid because of previous appeals court rulings that the appointments were unconstitutional.
Richard Hunt, the president and CEO of the Consumer Bankers Association, said the Supreme Court’s announcement “is a reminder the CFPB operates under a continuing cloud of uncertainty for consumers and the industry,” adding that the agency should be restructured.
Many CFPB critics have recommended the restructuring of the agency to include a five-member board instead of the single director, as well as the placement of the CFPB budget under the congressional appropriations process.
“After all, it will be the activists who will be calling for a commission when a Republican President selects a Director,” Hunt said. “A balanced approach to supervision and certainty for consumers should be the goal, and Congress has the power to make it so.”