Dickinson, Mackaman, Tyler & Hagen, P.C.

CFPB Is Still Constitutional: Court dismisses challenges to constitutionality of CFPB

John Lande Iowa Banking Law  Dickinson Law Firm Des Moines, Iowa

Posted on 09/18/2013 at 01:21 PM by John Lande

This blog previously covered a challenge to the constitutionality of the CFPB, Financial Stability Oversight Counsel (“FSOC”), and Richard Cordray's recess appointment. The lawsuit, titled State National Bank of Big Spring, et al. v. Timothy Geithner, et al., was brought in the United States District Court for the District of Columbia. On August 1, 2013, the court dismissed the lawsuit for lack of standing. In other words, the court concluded that the plaintiffs in this lawsuit were not harmed and therefore the Constitution does not permit them to bring a lawsuit. The court found that the lead plaintiff’s, State National Bank of Big Spring, theory of injury is based on “guesswork.” The same is true for several states that also joined the lawsuit—Alabama, Georgia, Kansas, Michigan, Montana, Nebraska, Ohio, Oklahoma, South Carolina, Texas, and West Virginia. The fundamental problem for the bank, states, and other plaintiffs is that they have not yet been subject to any enforcement action pursuant to Dodd-Frank or the regulations implementing Dodd-Frank. As a result, they have not suffered any injury, and the Constitution requires an actual injury in order for the federal courts to intervene. The fight isn't over, however. A day after the court's ruling, the plaintiffs in this lawsuit filed their notice of appeal to the United States Court of Appeals for the District of Columbia. This means the case is far from over, but the CFPB and Richard Cordray have overcome a major challenge.  

The material in this blog is not intended, nor should it be construed or relied upon, as legal advice. Please consult with an attorney if specific legal information is needed.

- John Lande

Categories: Banking Law, John Lande

 

Questions, Contact us today.

 


The material, whether written or oral (including videos) that is posted on the various blogs of Dickinson Law is not intended, nor should it be construed or relied upon, as legal advice. The opinions expressed in the various blog posting are those of the individual author, they may not reflect the opinions of the firm.  Your use of the Dickinson Law blog postings does NOT create an attorney-client relationship between you and Dickinson, Mackaman, Tyler & Hagen, P.C. or any of its attorneys.  If specific legal information is needed, please retain and consult with an attorney of your own selection.

Comments
There are no comments yet.
Add Comment

* Indicates a required field

© 2019 Dickinson Mackaman Tyler & Hagen, PC