A federal court's ruling in January that several of President Obama’s recess appointments were unconstitutional has cast doubt on Richard Cordray’s position as Director of the Consumer Financial Protection Bureau. But Alan S. Kaplinsky, a partner at Ballard Spahr, said there are several potential solutions that might avoid the worst consequences.

“There will be legal uncertainty for sure, but that doesn’t mean we’re in a situation where there is no possible cure for the uncertainty,” said Mr. Kaplinsky, Practice Leader of the firm’s Consumer Financial Services Group.

The Dodd-Frank law includes a provision that allows the Treasury Secretary to exercise some of the CFPB’s powers when there is no director. Mr. Kaplinsky believes most of the rules the agency has already issued could be ratified by Treasury if necessary.

Related Practice

Consumer Financial Services