A federal appeals court ruling last week might force Democrats to cut a deal with Republicans over the structure of the Consumer Financial Protection Bureau.
The ruling called into question the legality of President Obama's recess appointment of Richard Cordray to head the CFPB, but Republicans have refused to consider his nomination unless structural changes are made.
Observers said Democrats might consider offering Republicans a deal that replaces the agency's single director with a five-member commission, a key demand from GOP lawmakers.
Yet others argued the White House could continue to hold out barring an appeal to the Supreme Court.
"I don't see the president withdrawing Cordray, and I don't see them doing anything but continuing to take this on a fight," Mark Calabria, director of financial regulation studies at the Cato Institute and a former GOP Senate aide said.
House Financial Services Committee Chairman Jeb Hensarling said Friday that the court ruling should push the Obama administration to cut a deal.
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