Keating: Cordray Recess Appointment Creates Uncertainty

President Obama’s use of a recess appointment to install Richard Cordray as director of the CFPB was a “big mistake” because it has spawned an atmosphere of uncertainty, ABA President and CEO Frank Keating said Friday on the Fox Business Network.

This recess appointment, particularly when you look at the statute, consider the constitution, is questionable. I think that is unfortunate because we in business, certainly in banking, need certainty.

He explained that the Dodd-Frank Act says the Treasury secretary will provide certain authorities to the CFPB until there is a Senate-confirmed director, but the Senate did not confirm Cordray.

He noted that Cordray, as CFPB director, will be a member of the FDIC board of directors and questioned whether Cordray’s disputed appointment will jeopardize decisions made by the board.

Watch Keating’s interview.