Senate Republicans have been holding up the confirmation of Richard Cordray to head the new Consumer Financial Protection Bureau until changes to the agency’s structure are made to provide oversight and accountability at the agency. But sources from inside the Capitol tell Capitol Confidential that a recess appointment of Richard Cordray to head the unconstitutional CFPB could come as early as tomorrow.

“We have been hearing consistently from the Senate offices that the President is considering a recess appointment of Richard Cordray along with a slew of other controversial nominees in the brief period between the two sessions of Congress,” a key Senate source said. “Now we are hearing from Senior Democrat staffers that something big is coming tomorrow [Jan 4].”

Article II, Section 2 of the Constitution provides the president with the power to “fill up all Vacancies that may happen during the Recess of the Senate.” The problem for the president and his liberal allies is that the Senate has not recessed and technically remains in session. However, liberal groups are pressing the White House to invoke the “Roosevelt Option” to stack key government positions with radicals ready to carry out an anti-business, pro-big labor regulatory agenda. The Roosevelt Option is coined from the actions of Teddy Roosevelt who in 1903, in a split-second between two congressional sessions of Congress, made more than 100 recess appointments. In 2012, Congress will need to move from the First Session of this current Congress to the Second Session. Liberals claim the fraction of a second between the sessions is enough to trigger presidential power.

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WASHINGTON (AP) – Senate Republicans have blocked President Barack Obama’s choice to head the consumer protection agency that was created after the 2008 financial meltdown.

His nominee, former Ohio Attorney General Richard Cordray, ran into near-solid opposition from Republicans.

As a result, Democrats couldn’t muster the 60 votes needed to move ahead on the nomination. Only one Republican joined Democrats in voting Cordray.

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From the Associated Press:

Berwick’s fate was sealed early this year when 42 GOP senators—more than enough to derail his confirmation—asked Obama to withdraw his nomination. His resignation takes effect Dec. 2.

Berwick’s statements as an academic praising Britain’s government-run health care had become a source of controversy in politically polarized Washington. Although he later told Congress that “the American system needs its own solution” and Britain’s shouldn’t be copied here, his critics were not swayed.

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When Sen. Dick Durbin (D-IL) was convinced by a retailing giant to enact legislation imposing price controls on credit card transactions he engineered a massive wealth transfer from credit card companies to retailers – a cost that would ultimately be borne by consumers.  Opponents of Durbin’s fee warned of the consequences of his actions including increased costs for consumers and elimination of credit card incentive programs.  As Milton Friedman said, “there is no free lunch.”

After the government imposed their fee cap, the marketplace responded predictably.  Banks, including Bank of America, raised fees on consumers in order to cover the cost imposed by the Durbin Amendment.  Caught with his tail between his legs, Durbin and his allies declared war on the banks.  In a letter to the newly codified Consumer Financial Protection Bureau (CFPB), Durbin accused banks of trying to “sneak fees past” consumer and “urge[d]” the CFPB to “swiftly require financial institutions to post on their websites a standardized, concise and consumer-friendly disclosure form that lists the fees and key terms associated with checking accounts.”

Whether Durbin is successful in fighting back remains to be seen but what we do know is we now have a government agency at the disposal of elected officials that will police marketplace policies, fee structures and pricing decisions.  If it’s not bad enough that the Bureau will make regulatory decisions based on the political whims of politicians, their own justification for regulations are worse.  Much worse.

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Hopefully, it is not an ominous sign of things to come.

Last week, the Senate confirmed former Kentucky insurance regulator S. Roy Woodall for the one voting position on the federal Financial Stability Oversight Council (FSOC) reserved for someone with insurance expertise. The term is for six years.  The FSOC is in charge of monitoring the financial system to guard against the failure of the largest bank holding companies and non-bank financial institutions.

For the past year, Republicans in the House and Senate have worked together to prevent the approval of numerous president appointments both through regular order and through the use of recess appointment authority.  By keeping the House from adjourning when vacation and breaks come, the president has been unable to exercise his power thus sparing the nation from another round of liberal appointments that can do great damage to the country.

Because the confirmation process is often one of compromise and deal making, some worry about the possibility of a deal involving Richard Cordray and the Consumer Financial Protection Bureau (CFPB).

Especially in light of the fact that the Senate Banking Committee has called a vote on the Cordray confirmation itself this Thursday, October 6.   Sources in the nation’s Capitol have told Big Government that liberal Sen. Sherrod Brown (D-OH) is pressuring Sen. Rob Portman (R-OH) to break the logjam, as Cordray is from Ohio.

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On September 6th, Senate Democrats will hold a confirmation hearing on Richard Cordray, President Obama’s nominee to head the Consumer Financial Protection Bureau (CFPB)– a new regulation producing machine created by the Dodd-Franks bill. The Democrat Leadership in Senate is using the hearing to pressure the Republican Leadership to bow, allowing the liberal’s dream of a single agency that can regulate any financial transaction in America to become reality. Without your input and pressure, it might.

As we already know, the CFPB was designed to be a regulatory agency “one like we have not seen before,” according to Senator Chris Dodd. Originated by Harvard Professor Elizabeth Warren, the CFPB is created to be a “one-stop” shop to regulate all consumer financial products in America – from mom-and-pop store layaway plans to mortgage loans and applications. The Bureau was given unprecedented regulatory powers with no checks and balances while the head of the CFPB is an unelected bureaucrat who can pick and choose what industry to regulate.

Obama’s first pick for this dictatorial position was anti-capitalism crusader Elizabeth Warren who was resoundingly rejected. No matter who the head of this agency becomes, it has too much unmitigated and unaccountable power.

That is why back In May, 44 of the 47 Senate Republicans, including Minority Leader Mitch McConnell, sent a letter to Obama vowing to block any nominee to serve as director of the CFPB absent key changes, including eliminating the director’s position in favor of a board and forcing the agency to be dependent on Congressionally appropriated funds for its operating budget.

Democrats apparently believe that their problem the first time was that they had the wrong nominee to head the agency. So now, President Obama has nominated lesser known but every bit as liberal trial lawyer Richard Cordray to assume the position of dictatorial ruler over US businesses.

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