Today the D.C. Circuit ruled that a constitutional challenge to the Consumer Financial Protection Bureau (CFPB) by a West Texas bank will go forward. In a per curiam opinion by Circuit Judge Brett M. Kavanaugh, the D.C. Circuit panel held that the district court erred in concluding that a regulated bank did not have standing to challenge either the constitutionality of the legislation that created the CFPB or the recess appointment of CFPB Director Richard Cordray.
The panel affirmed dismissal of the bank’s challenges to the Financial Stability Oversight Council and the “orderly liquidation authority” conferred on several agencies by Dodd-Frank. The panel also rejected arguments by several states whose statutory rights would be impaired by the use of the orderly liquidation authority.
The case is State National Bank of Big Spring v. Lew, No. 13-5247.