By Peter Schroeder - 01/04/12 09:39 PM EST
The recess appointments President Obama announced Wednesday are “almost certain” to be challenged in court, according to a top official with the nation’s largest business lobby.
The U.S. Chamber of Commerce has not decided whether it will file a legal challenge to the appointments, according to David Hirschmann, who heads the Chamber’s Center for Capital Markets Competitiveness. But he said he’s confident that Obama’s precedent-shattering move will land the administration in court.
Obama infuriated Republicans Wednesday by announcing the recess appointment of Richard Cordray to be the first director of the Consumer Financial Protection Bureau (CFPB). Senate Republicans had blocked Cordray's nomination for months, so the president bypassed them with a recess appointment during the holiday break.
He followed that up later in the day with recess appointments for three members of the National Labor Relations Board (NLRB), heading off another likely GOP filibuster.
The recess appointments broke with legal precedent, as they while the Senate is holding regular pro forma sessions. Republicans insist the Senate has not been in recess thanks to the seconds-long sessions held every few days, but White House attorneys determined the procedural move is a gimmick that can be ignored by the president.
House Speaker John BoehnerJohn BoehnerOvernight Finance: GOP makes its case for impeaching IRS chief | Clinton hits Trump over housing crash remarks | Ryan's big Puerto Rico win House GOP changes rules to thwart Dems Ryan secures big win with bipartisan Puerto Rico deal MORE (R-Ohio) blasted the move as an "unprecedented power grab" and said he expects "the courts will find the appointment to be illegitimate."
The gambit puts the bureau in "uncertain legal territory," according to Senate Minority Leader Mitch McConnellMitch McConnellBill would require nominees to release tax returns Overnight Healthcare: House loosens pesticide rules to fight Zika | A GOP bill that keeps some of ObamaCare | More proof of pending premium hikes Senate votes to block financial adviser rule MORE (R-Ky.).
CFPB backers were eager to get Cordray in place in large part because the CFPB, created by the Dodd-Frank financial reform law, cannot fully realize its powers without a director in place.
Hirschmann said questions like that are the type of thing a court will need to consider.
"Clearly, there's new ground here," he said.
And while the Chamber is "not eager to litigate," he blasted the president for a move he said is primarily motivated by politics.
“It looks like the goal here is more the headlines and the confrontation and the politicization of this new agency rather than a substantive outcome," he said.
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