Obama hints at recess appointment for consumer bureau after GOP blocks Richard Cordray

Updated: 2:39 p.m. ET

President Obama on Thursday lambasted Senate Republicans for blocking the nomination of Richard Cordray to head the Consumer Financial Protection Bureau (CFPB), suggesting in a press conference that a recess appointment for Cordray is not "off the table." 

The Senate on Thursday voted to block Cordray's nomination, falling seven votes short of the 60 required to move the nomination forward.

One senator voted present and 53 voted in favor, while 45 voted against. The vote was largely along party lines with Senator Scott Brown, R-Mass., the lone Republican who voted with  Democrats in favor of the Cordray nomination. No Democrat voted against the nomination. Senator Kerry, D-Mass., did not vote. 

Mr. Obama, speaking shortly after the vote, said there was "no reason" Cordray's nomination should not have been approved, and accused Republicans of putting politics before the interests of the American people. 

"There is no reason why Mr. Cordray should not be nominated, and should not be confirmed by the Senate and should not be doing his job right away in order to carry out his mandate and his mission," Mr. Obama said. 

"I just want to send a message to the Senate: We are not giving up on this," Mr. Obama added. "We're going to keep on going at it. We are not going to allow politics as usual on Capitol Hill to stand in the way of American consumers being protected by unscrupulous financial operators. And we're going to keep on pushing on this issue."

When asked if he might consider a recess appointment for Cordray, the president said he would not "take any options off the table" in getting Cordray through the confirmation process -- though he said it was his "hope and expectation" that the Republicans who blocked the bill would "come to their senses."

"This is a law that was passed by Congress that I signed into law that is designed solely to protect American consumers," he said. "Why wouldn't we want to have somebody just to make sure that people are being treated fairly? Especially when not only is that family affected, but our whole economy is affected."

There's a good chance, however, that Congress won't formally recess. Senate Republicans may block a recess if they think Mr. Obama will make recess appointments during it. If that happens, the Senate would meet in pro forma session throughout the period the recess otherwise would occupy.

Few expected Cordray to achieve the necessary support to overcome a Republican filibuster, despite a last-minute White House media blitz aimed at educating voters about the bureau and the consumer protections that would be put in place if Cordray was approved as its director.

Even before Cordray's nomination, 44 Republican Senators -- four more than are needed to filibuster a nomination -- signed a letter to President Obama pledging to block any nominee barring a drastic restructuring of the CFPB. One of the restructuring moves for which they called was the elimination of the director position altogether.

Michael Brumas, a spokesman for House Minority Leader Mitch McConnell, R-Ky., told Hotsheet on Monday that Senate Republicans would continue stand by the letter letter because "the White House hasn't responded to our calls to change the structure of the bureau."

"That's basically still our position," Brumas said. "The letter still stands."

On Thursday Mr. Obama invited Republicans who had misgivings about elements of the agency's structure to introduce legislation to Congress that would modify the parts with which they took issue.

"I know that some [Republicans] have made the argument, 'Well we just want to sort of make some modifications in the law.' Well they're free to introduce a bill and get that passed," said Mr. Obama.

[aigsucks]

Every person that Obama put on Tax Payers wages, either quite before being fired, fired before being charged or appears before Congress to answers questions of wheres the E-mails, Money, who knew what, when how and why that theres no BEEF in this Bun that you just cooked!!
If Obama ever ask me to one of these posts, I would take the 5th, thats the 5th gear of getting out of town!!!

[RobAla]

According to an article in Forbes (reference to Wall Street Journal article), this is what the Republicans want:

"In an op-ed piece in the Wall Street Journal this summer Senator Shelby called Cordray's nomination "dead on arrival" unless 3 issues about the agency are addressed:

1. The bureau should have a board of directors for oversight.
2. The bureau should be subject "to the congressional appropriations process to ensure that it doesn't engage in wasteful or unnecessary spending."
3. Bank regulators like the FDIC, the Federal Reserve and the Office of the Comptroller of the Currency could keep the CPFB from infringing on "the safety and soundness of financial institutions—as it would, for example, by unduly banning profitable products or imposing unwarranted and onerous regulations that threaten banks' solvency."

I see no problem with Congressional oversight. We have too many agencies acting as their own fiefdoms, answering to no one. The EPA is probably the worse. The US federal government has grown into a massive entity, which has many agencies answering to no one. Accountability is extremely important, especially when it comes to having the power to affect the economy of a nation.

Any President who is against oversight of an agency, I am afraid may do so because he wishes to use that agency as his own political toy to weld power in areas to suite his own agenda (and bypass our elected representation in Congress). This would create an unbalance in the balance of power in Washington. We do not need a king.

[gep1955]

Has anyone noticed everytime the government decides to protect consumers the price of everything we consume starts going up in order to help pay for the consumer protection. No thanks.We are over-protected already.

[arthanyel]

To be a Republican you need to believe:

1. Jesus loves you, and shares your hatred of homosexuals and Barack Obama

2. Saddam was a good guy when Reagan armed him, a bad guy when Bush's Daddy made war on him, a good guy when Cheney did business with him, and a bad guy when Bush needed a "we can't find Bin Laden" diversion.

3. Trade with Cuba is wrong because the country is Communist, but trade with China and Viet Nam is vital to a spirit of international harmony.

4. The United States should get out of the United Nations, and our highest national priority for years was enforcing U.N. resolutions in Iraq.

5. A woman can't be trusted with decisions about her own body, but multinational drug corporations can make decisions affecting all mankind without regulation.

6. The best way to improve military morale is to praise the troops in speeches, while slashing veterans' benefits and combat pay.

7. A good way to fight terrorism is to belittle our longtime allies, then demand their cooperation and money.

8. Providing health care to all Iraqis is sound policy, but providing health care to all Americans is socialism. HMOs and insurance companies have the best interests of the public at heart.

9. Global warming and tobacco's link to cancer are junk science, but creationism should be taught in schools. Evolution is a lie, but get a flu shot every year because the virus evolves.

10. A president lying about an extramarital affair is an impeachable offense, but a president lying to enlist support for a war in which tens of thousands die and the nation is plunged into debt is solid national policy.

11. Government should limit itself to the powers named in the Constitution, which include banning gay marriages and censoring the Internet.

12. Being a drug addict is a moral failing and a crime, unless you're a conservative radio host. Then it's an illness and you need our prayers for your recovery.

13. You support "Executive Privilege" for every Republican ever born, who will be born or who might be born (in perpetuity.)

14. Support hunters who shoot their friends and blame them for wearing orange vests similar to those worn by the quail.

15. You can vote to raise the debt limit as long as Obama is not President.

16. Officials should allow Christian prayer and Bible studies in schools and government buildings as a matter of Religious Freedom, but Muslims should not be allowed to build mosques or be elected to office because they practice Islam.

17. You have an argument why every one of the above is sensible and not hypocritical, and besides look at all the terrible things the Democrats may have done.

[arthanyel]

I should have prefaced this with "To be chevyhotrid you must believe . . ."

[noloyalisti]

Chevy is making a great, great case for forgetting our differences and uniting the 99% against the Top 1% Robber Barons of America.

Almost all his complaints come from the top (1%). They have declared war on the American people and it's government. And must be stopped by any means necessary.

[arthanyel]

Agreed

[arthanyel]

chevyhotrod : How about the parable about the evil government that catered only to its cronies, eliminated restrictions on its biggest businesses, and took money from the average person to pay big dividends to the richest 1% - and refused to let the average people have a say. And when those average people demanded their rights, they were attacked, had their property stolen, and had their business ruined by new policies that let the crony big businesses destroy their work?

That parable was called THE AMERICAN REVOLUTION, and it is as true now as it was then - letting the 1% plutocrats control everything and screw the average person over to benefit themselves doesn't end well for the 1%.

[jefflz-2009]

This is further proof that the Republicans are tools of the big banks. They want to guarantee that their masters will be able to dilute any consumer protection regulations that get in their way. There are no surprises here. The Party No Way No How will continue to block any action on behalf of the people as long as they have the power to do so.

[noloyalisti]

Here we have Obama, who in spite of the wacko Republicon Corporatists who are arguably mentally deranged, is trying to do great things for the American people. And run the government for the benefit of the 99%.

American has become a perverted, sick, corrupt and mentally deficient terrorist, fascist state run for the Top 1%. And you wonder why there is the rapidly expanding Occupy 99% Movement?

[thechooch1]

chevyhotrod wouldn't "all" be much more like 99% than 1%?

[RetiredArmy_Nurse]

Well Chevy, it appears that the top 1% have more freedom than the remaining 99% all together. They control a plurality of the wealth and their greediness keeps funneling more $ to them with favorable tax breaks. Conservatives seem to have gotton away from their old line about 47% of Americans not paying federal income taxes, but this bottom 47% only controls 2% of America's total wealth. Try and squeeze a bit more blood from that turnip.

[vielmann]

I think we all know why evil republicans don't want consumer protections. Anyone out there clueless about the reason? Teabaggers, don't answer. We know that you're preoccupied with your mobility scooters.

[Cru09]

Congratulations Republicans, you're now responsible for delayed recovery. All news articles will slowly begin to pile on focus on the obstruction. You should've played the game when you had the chance, now you'll be forced into voting on legislation you don't agree with in order to save face.

[PourpaixPourpaix]

Another very sad day for America. As an independent, I believe that multiple parties are necessary to ensure a healthy republic. One party in charge for long periods becomes the cornerstone of an abusive state, shown again and again.

However, this consumer law is a valid American law brought into being by our Constitutionally sanctioned procedures. For the Republicans to block implementation of this law in the manner they have chosen, they circumvent the Constitution and misuse their powers. As with other examples of the last decade, the Republicans have proven themselves, each and together, as criminals. I suggest all Americans treat them as the criminals they are. They have become enemies of the State, and all who have sworn allegiance to America and its Constitution have a duty to depose and eliminate all such offenders. The Republican party no longer has any business in American politics.