State National Bank of Big Spring has challenged the constitutionality of the “formation and operation” of the Consumer Financial Protection Bureau (“CFPB”), Financial Stability Oversight Council (“FSOC”), and the appointment of CFPB director Richard Cordray.
The local Texas bank, joined by interest groups The 60 Plus Association, Inc. and The Competitive Enterprise Institute, alleges the CFPB has “effectively unbounded power” and is “insulat[ed]…against meaningful checks” by all branches of government – a violation of the separation of powers. The lawsuit also claims the FSOC is similarly insulated from checks and has too much discretion in deciding which financial companies will receive federal backing. Finally, the lawsuit states that because the President appointed Richard Cordray without “the Senate’s advice and consent while the Senate was in session” the appointment is unconstitutional.
The bank also claims that the Dodd Frank provision that authorizes the CFPB to create rules prohibiting “unfair, deceptive or abusive acts or practices” provides no meaningful definition of what constitutes an “unfair” practice, creating unnecessary risks for lenders left unsure of their boundaries.
Full content: Complaint (PDF)
Related content: Preserving Competition After the Banking Meltdown
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Cisco Closes $28 Billion Splunk Deal
Mar 19, 2024 by
CPI
Ropes & Gray Strengthens Antitrust Practice with New Partner
Mar 19, 2024 by
CPI
Biden Administration Supports Antitrust Suit Against FIFA
Mar 18, 2024 by
CPI
Apple in Talks to Incorporate Google’s Gemini AI Amid Antitrust Scrutiny
Mar 18, 2024 by
CPI
Appeals Court Revives Regeneron’s Antitrust Lawsuit Against Novartis Over Vision Treatment
Mar 18, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Pricing Algorithms
Feb 28, 2024 by
CPI
Pricing Algorithms and Antitrust Enforcement: Sandboxes to the Rescue?
Feb 28, 2024 by
CPI
AI, Algorithmic Pricing, and Collusion
Feb 28, 2024 by
CPI
Competition & Collusion in a World of Algorithmic Pricing: Antitrust Risks & Enforcement Trends
Feb 28, 2024 by
CPI
Pricing Algorithms in Antitrust’s Sights?
Feb 28, 2024 by
CPI