Free-market advocates cheered Obama’s regulatory setback.
“The voluminous rules the CFPB has issued — affecting everything from mortgages to small businesses — also now are under a constitutional cloud,” said John Berlau, a senior fellow for finance and access to capital at the Competitiveness Enterprise Institute.
“The illegality of Cordray’s appointment casts serious doubt on the legality of CFPB actions implemented since his appointment,” said a statement from C. Boyden Gray, former White House counsel to President George H.W. Bush, who has filed cases against Obama’s regulation of finance companies.
“We’re confident that Mr. Cordray’s appointment will meet the same fate as those NLRB members,” said Sam Kazman, co-counsel for the CEI, which supported the lawsuit. The four improperly appointed officials “will be remembered as the Not-So-Fab-Four of the Appointments Clause,” he added.