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Stories tagged with “Richard Cordray

NEWS FLASH

White House Attorneys Conclude Nothing Prevents Obama From Making Recess Appointments | As ThinkProgress explained yesterday, the Constitution empowers President Obama to make a recess appointment right now. In a possible sign that the president is poised to appoint Richard Cordray as head of the Consumer Financial Protection Bureau, the Wall Street Journal reports that White House attorneys have reached the exact same conclusion.

Update

Citing anonymous sources, the AP is reporting that Obama will recess appoint Cordray as soon as today.

Justice

McConnell Takes Every Single Judicial Nominee Hostage To Sabotage Consumer Protection Agency

On Saturday, the Senate closed off what was supposed to be its last day of business for the year (the Senate may need to reconvene, now that Speaker John Boehner has blown up a deal to extend tax cuts to middle class Americans). Yet the Senate closed out the year without confirming any of the 21 judicial nominees currently awaiting a vote on the Senate floor. Worse, according to the Senate’s chief obstructionist, these judicial nominees — along with more than two dozen other nominations — are intentionally being held hostage in order to prevent President Obama from recess appointing anyone to head the Consumer Financial Protection Bureau:

At the end of a rare Saturday session, the Senate’s last day of official business for the year, McConnell blocked an effort by Senate Majority Leader Harry Reid (D-Nev.) to confirm more than 50 executive and judicial branch nominations awaiting Senate action.

And he laid out a condition to releasing his objection: “confirmation from the administration that it will respect practice and precedent on recess appointments.”

McConnell added that he needed from the White House “assurances that have been routinely given at this point with regard to recess appointments.”

It’s unclear just what “practice or precedent” McConnell is referring to, but there is no one who has less standing to complain about unprecedented action than McConnell himself — the lead architect of the Senate GOP’s nihilistic campaign to make it impossible for President Obama to govern. Without an agency head in place, the CFPB cannot perform many of its core functions. Yet, Senate Republicans are filibustering CFPB director-in-waiting Richard Cordray in order to sabotage this newly created consumer protection agency. If McConnell really cares one bit about respecting “practice and precedent,” he can show it by ending this blockade and recognizing that the Senate minority does not have the legitimate authority to effectively repeal an entire agency.

McConnell could also show that he respects practice and precedent by returning the Senate to the way it operated before he became minority leader. Simply put, no one in recent American history has done more to abuse the filibuster than Mitch McConnell — as demonstrated by the massive spike in votes attempting to break filibusters once McConnell took over the minority caucus:

President Obama is not powerless, however, against McConnell’s effort to sabotage the CFPB. If McConnell will not end his blockade, Obama can invoke the Roosevelt Precedent, which allows him to appoint Cordray the second the Senate adjourns for the year.

Justice

Sen. Mike Lee Admits He Filibusted CFPB Nominee To Sabotage The Agency

Earlier today, 53 percent of the Senate voted to move forward with Richard Cordray’s nomination to lead the new Consumer Financial Protection Bureau — depriving him of the supermajority he needs in order to be confirmed. One of the senators joining this filibuster, Sen. Mike Lee (R-UT), was uncharacteristically candid about why he helped build this wall of obstruction — he simply wants to sabotage the agency:

I have met Mr. Cordray, and my decision to oppose his confirmation by the Senate has nothing to do with his qualifications. Rather, I feel it is my duty to oppose his confirmation as part of my opposition to the creation of CFPB itself. [...] Confirming any director for this bureau would be tantamount to agreeing that we need a uniquely powerful super-agency that is not even designed to prevent a repeat of the financial crisis. Until the CFPB is reformed, I will not support it in any way.

Simply put, this is nothing less than a direct assault on the rule of law. The CFPB was created by an Act of Congress and can only be repealed or modified by an Act of Congress. By his own admission, Lee’s filibuster is an attempt to make an end run around the Constitution’s legitimate lawmaking process.

But, of course, this filibuster is also just one more example of the Tea Party senator’s nihilistic approach to governance. Lee believes that federal child labor laws, FEMA, food stamps, the FDA, Medicaid, income assistance for the poor, and even Medicare and Social Security violate the Constitution. He not only sponsored a radical constitutional amendment that would force the United States to adopt Tea Party fiscal policy forever, he then openly admitted that he was using last summer’s debt ceiling crisis to extort the rest of the Congress into passing his amendment.

Fortunately, President Obama does not need to allow Lee’s nihilism to shut down an essential check on Wall Street’s excesses. When the Senate adjourns for the year, Obama should immediately invoke the Roosevelt Precedent and recess appoint Cordary.

NEWS FLASH

Senate Republicans Successfully Filubuster Consumer Protection Bureau Nominee | Senate Republicans today, as expected, filibustered the nomination of former Ohio Attorney General Richard Cordray to be the first director of the Consumer Financial Protection Bureau. The vote was 53-45, with 60 votes needed to break the filibuster. Sen. Scott Brown (R-MA) was the only Republican to vote in favor of confirming Cordray. Sen. Olympia Snowe (R-ME) voted present.

Justice

If CFPB Nominee Richard Cordray Is Not Confirmed, Obama Should Invoke The Roosevelt Precedent To Appoint Him

Last year, Congress enacted a law creating a Consumer Financial Protection Bureau (CFPB) to protect ordinary Americans from some of Wall Street and the banking industry’s worst abuses, and the Senate is expected to vote on CFPB Director-in-waiting Richard Cordray’s nomination this Thursday. Nearly every Senate Republican, however, signed a letter pledging to sabotage this agency by refusing to confirm anyone to lead it. And congressional Republicans manipulated the Senate’s calendar in a way that they claim — falsely — strips President Obama of his power to make recess appointments.

Should the Senate GOP keep its promise to filibuster Cordray, however, President Obama will soon have an airtight opportunity to recess appoint him to lead this essential agency. All that Obama needs to do is invoke the Roosevelt Precedent:

[T]his winter, Congress must adjourn — at least briefly — to inaugurate the new session of Congress. Theodore Roosevelt used such a brief intersession adjournment to ram through an appointment during his administration. From a congressional report on recess appointments:

Although President Theodore Roosevelt once made recess appointments during an intersession recess of less than one day, the shortest recess during which appointments have been made during the past 20 years was 10 days. Appointments made during short recesses (less than 30 days) have sometimes aroused controversy, and they may involve a political cost for the president.

Such an appointment would not be without political controversy — but would likely be upheld as legal given the Roosevelt precedent.

Each day the Senate GOP gets away with its unprecedented obstructionism makes a mockery of the rule of law. The CFPB was created by an Act of Congress, and it cannot be repealed except through an intervening law — not by kneejerk obstructionism by the minority party in the Senate. The Senate GOP’s nihilistic tactics require Obama to use all constitutional tools at his disposal to ensure that the law actually means something, and that includes invoking the Roosevelt Precedent if necessary.

Simply put, it’s time for President Obama to speak softly, and carry a big stick.

Economy

Scott Brown Breaks With GOP, Endorses Consumer Protection Agency Nominee

44 Senate Republicans have pledged to block any nominee to head the Consumer Financial Protection Bureau, the new agency created by the Dodd-Frank financial reform law. President Obama has nominated former Ohio Attorney General Richard Cordray to be the agency’s first director, but he has yet to receive a vote due to the GOP’s intransigence.

Senate Republicans are blocking Cordray’s nomination because they oppose the very idea of a regulator focused solely on protecting consumers from Wall Street excess. But one Republican is breaking ranks with his party and supporting Cordray’s nomination — Sen. Scott Brown (R-MA):

Senator Scott Brown of Massachusetts yesterday became the first Republican to back the nomination of Richard Cordray to lead the new Consumer Financial Protection Bureau — whose chief architect, Elizabeth Warren, is challenging Brown in his reelection bid next fall.

The decision is a break from Republican leaders, GOP candidates for president, and rank-and-file members, who have denounced both the structure of the bureau and the overarching Dodd-Frank regime of government regulations on Wall Street…“The senator supports the Cordray nomination and believes it deserves an up or down vote on the Senate floor,’’ spokesman John Donnelly said yesterday.

Of course, Brown’s sudden support for Cordray likely has to do with the fact that he’s facing a strong challenge from Harvard Law Professor Elizabeth Warren, who not only came up with the idea for the Consumer Protection Bureau, but led it from its creation to its official opening.

Brown has tried to walk the fine line between favoring necessary Wall Street reforms and not earning the wrath of the financial sector. He voted for the Dodd-Frank law, but not before forcing its authors to significantly weaken a key regulation aimed at cutting back on the biggest banks’ risky trading.

As he was weakening Dodd-Frank, Brown was showered with financial sector cash. He then tried to claim the mantle of a Wall Street reformer, saying, “I worked very hard to make sure that banks didn’t act like casinos with our money.” Now, facing a challenge from a true Wall Street reformer, Brown is trying to distance himself even further from the GOP’s cozy embrace of the banks.

Economy

Republicans Promise To Continue Obstruction Ahead Of CFPB Nominee’s First Hearing

Richard Cordray

Former Ohio Attorney General Richard Cordray is scheduled to appear in front of the Senate Banking Committee today for the first time since President Obama nominated him to become the first director of the Consumer Financial Protection Bureau. The GOP, meanwhile, has promised to continue their obstruction of anything related to the agency without considering Cordray’s nomination on its merits.

Republicans have requested sweeping structural changes to weaken the agency since it was signed into law as part of financial regulatory reform, demanding that it be run by a board instead of a director, that its budget be subject to congressional approval, and that other regulators have more power than the bureau itself. That means Cordray’s appearance today is an “interview for a job he is unlikely to get,” as the Banking Committee’s ranking Republican, Sen. Richard Shelby (AL), insisted that hearings related to the agency are irrelevant until Obama and Democrats relent on the issues most important to Wall Street banks the CFPB is meant to regulate:

“Opposition to or support of Mr. Cordray’s nomination will become relevant as soon as the President agrees to make the structural changes we’ve requested,” said Jonathan Graffeo, the spokesman for Sen. Richard Shelby (R-Ala.). “Until then, Sen. Shelby and his colleagues stand firmly behind the statement they expressed in their May letter: No accountability, no confirmation.”

Republicans have used various methods to fight the CFPB, harassing Harvard professor Elizabeth Warren (who conceived the idea of the bureau) in Congressional hearings and refusing to allow the Senate to recess in order to avoid recess appointments. That obstruction, which will assuredly continue in Cordray’s hearing today, has been helped by the financial industry’s intense lobbying efforts to block implementation of the reforms and the CFPB in particular. The financial industry, in fact, has spent as much lobbying to block implementation of the Dodd-Frank financial reform law as it did to block the passage of the law itself.

The GOP has benefited from its continued obstruction. The 10 Republican members of the Banking Committee have taken in $31 million from the financial, insurance, and real estate sectors in their Senate careers. Shelby himself has received more than $6.2 million, including more than $1 million from commercial banks, according to the Center for Responsive Politics. Every GOP committee member has signed onto Shelby’s legislation to repeal financial regulatory reform.

Democrats, however, are gearing up for a fight over Cordray’s nomination. Rep. Barney Frank (D-MA) slammed Republican obstruction in an op-ed last week. Banking Committee Chairman Tim Johnson (D-ND), meanwhile, plans to unleash on the Republican Banking Committee members today, blasting them for holding Cordray and consumers hostage. “The purpose of today’s hearing should be to consider whether Mr. Cordray is qualified for [the] job…Instead, a vocal minority is playing games with the process and holding Mr. Cordray’s nomination hostage,” Johnson will say, according to prepared remarks obtained by Politico. “This political gamesmanship is preventing Americans from receiving the consumer protections they deserve.”

Alyssa

Cord Cutting Is A Real Thing

Some cable analysts think that as many as 10 percent of existing American cable subscribers will give up their subscriptions in favor of alternative television platforms by 2011. Now, a more conservative firm’s said they think it’ll be 4 percent by the end of the year and 10 percent by the end of 2015. And while the number of cable subscriptions may keep growing, it won’t be proportional to the overall growth of the potential market

The industry reversed the first-ever declines in the second and third quarters of 2010 to produce a small overall increase for the full year. The modest subscriber gain was neither convincing enough to dispatch the threat of cord cutting nor dismiss the impact of over-the-top substitution. At the end of 2010, we estimate 84.9% of the occupied U.S. households subscribed to a multichannel package after eliminating the overlap of customers with multiple subscriptions. The year-over-year dip from nearly 86% at the end of 2009 illustrates the potential peak in multichannel penetration.

Though we forecast continued absolute growth in subscribers, the pace is not expected to keep up with occupied household formation, leading to a long-term decline in penetrations for multichannel services. OTT substitution is the primary agent in the expected declines in traditional cable, DBS and telco video penetration. SNL Kagan estimates multichannel substitution via OTT delivery will grow from 2.5 million households at the end of 2010 to 12.1 million homes by 2015. The OTT substitution estimates account for nearly 10% of the occupied homes in the U.S. in the five-year forecast.

We’re at a moment of upheaval. The Parents Television Council’s filing briefs in cases challenging cable bundling. Even as alternatives to cable like Netflix get more popular, folks are complaining about the price increases that the company needs to support the contracts for content it’s renegotiating and attempting to expand, and we’re seeing the emergence of an actual competitive market in the alternatives to cable, as Amazon starts signing non-exclusive content contracts. I don’t know what the new landscape’s going to look like, or what company and technologies are going to win out, or where prices for content are going to land, which is part of what’s both exciting and frustrating about the moment that we’re living in. But if I were a cable company, I’d be very, very interested in giving my customers the impression that I was attentive to their concerns about price, customer service, and technological innovation to buy myself as much time as possible before cord-cutting hits hard and accelerates further.

NEWS FLASH

The White House should take the muzzle off its nominees | ThinkProgress editor-in-chief Faiz Shakir makes the case in today’s Washington Post: “The White House should take the muzzle off its nominees. Let them talk to the press over and over again to tout their accomplishments. Allow them to publicly defend their records, as they are best and uniquely qualified to do.” Shakir argues this is the only way that Consumer Financial Protection Bureau nominee Richard Cordray stands a fighting chance of getting confirmed by the Senate: “It’s time for a no-regrets approach. Richard Cordray shouldn’t be quarantined from the media while Republicans go on the attack.”

Check out Yglesias’ take here and read the whole op-ed here.

Yglesias

Let Richard Cordray Off The Leash

ThinkProgress Supreme Leader Faiz Shakir has a piece in the Washington Post arguing that unprecedented obstruction requires unprecedented tactics. Specifically, he argues that Barack Obama needs to drop the DC convention of having nominees suffer in silence meeting privately with legislators and let Richard Cordray speak:

After withdrawing his nomination earlier this year, Nobel Laureate Diamond was finally free to speak out. He took to the pages of the New York Times and appeared on MSNBC’s “The Rachel Maddow Show” to bemoan the many misconceptions that had been advanced by Republicans about his record. It was a cogent and powerful response to his detractors. But it came too late.

It’s time for a no-regrets approach. Richard Cordray shouldn’t be quarantined from the media while Republicans go on the attack. This time, let the nominee speak.

I think this is especially compelling in light of the fact that at least 44 Senate Republicans have already indicate that they’ll filibuster any nominee unless President Obama agrees to substantially restructure the Consumer Financial Protection Bureau in order to make it more bank-friendly. Under the circumstances, we’re not really talking about a narrow “confirmation strategy;” we’re talking about a broader political strategy around the CFPB. Since Cordray would be the first chief of the new bureau whose very existence and basic structure are controversial, it makes a lot of sense for him to do media appearances where he can explain his vision for the agency in some detail and lay out his argument for the structure currently enshrined in law.

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