Senate Democrats largely supported the idea of appointing Elizabeth Warren as the temporary head of the Consumer Financial Protection Bureau, with one key exception — Banking Committee Chairman Chris Dodd — who joined Republicans in arguing such a move would be a "mistake."
Democrats generally endorsed Warren's leadership on Tuesday, saying the White House should use any method possible to appoint her as leader of the consumer agency. American Banker reported Monday that the Obama administration is considering appointing Warren as temporary head of the agency, sidestepping a potentially bruising confirmation battle.
Republicans, meanwhile, insisted that the appointment should go through the traditional Senate confirmation process, which would require at least 60 votes to block a potential filibuster.
Dodd clearly agreed, arguing that the administration's idea sounded akin to a recess appointment.
"I'm just not in favor of recess appointments, except under the circumstances where it's called for," Dodd told reporters. "Otherwise, you are abusing the process, and I think it's a mistake — I don't care who the nominee is."
Warren's supporters have noted that the Dodd-Frank law enables the Treasury Secretary to appoint staff on an interim basis to get the CFPB up and running, and could be used to bring Warren on board. But Dodd said he never intended for the provision to be used in such a manner and circumvent the Senate confirmation process.
He said such a move could set a dangerous precedent for future administrations, and fatally compromise the agency down the road.
