Why the Recess Appointment Exists

Because when some narcissistic sociopath gets a bee in his bonnet and blocks a Nobel prize winner in economics from a seat on the Federal Reserve:

The decision by a noted economist Monday to end a 14-month wait for a seat on the Federal Reserve Board of Governors is renewing concerns among some Democrats about the fighting spirit of the Obama administration.

The candidate, Peter A. Diamond, an economics professor at the Massachusetts Institute of Technology and a Nobel Prize laureate for his work on labor markets, cited Republican opposition in asking the White House to withdraw his nomination.

But Democratic leadership did not press for a vote on the nomination, and Congressional aides said that the White House invested relatively little energy in fighting for Mr. Diamond. Moreover, they said that the administration had not submitted nominations for vacancies atop several of the federal agencies charged with overhauling and improving financial regulation in the wake of the 2008 crisis.

“There’s a deep feeling of frustration,” said one Democratic aide, who spoke on the condition of anonymity because of the sensitivity of the subject. “No one wants to insult the administration or put them in a position that’s uncomfortable for them or worse for them. So you’re just sitting around waiting for them to take the lead.”

The White House press secretary, Jay Carney, said on Monday that the White House did everything it could to push the nomination, and he lamented the “partisan obstructionism” that had prevented approval of Mr. Diamond.

(emphasis mine)

Yes, "partisan obstructionism", and the fact that your boss is a hopeless clueless chump.

Or maybe he really does not want meaningful regulation, and so he's leaving seats empty, so that Geithner can continue to run things for the benefit of the banksters.

Your call, but I am leaning toward door number 2.

Giving into hostage takers just encourages more hostage taking.

BTW, you can read Diamond's take on all of this here.