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
Federal Reserve Greenlights Capital One’s $35.3 Billion Acquisition of Discover
Apr 18, 2025 by
CPI
Google to Appeal Partial Ruling in DOJ Antitrust Case
Apr 18, 2025 by
CPI
Indian Ad Agencies Warned Against WhatsApp Discussions After Antitrust Raids
Apr 17, 2025 by
CPI
US Court Ruling Against Google Spurs Fresh Antitrust Tensions in Europe
Apr 17, 2025 by
CPI
AstraZeneca Accused of Stifling Biosimilar Competition for Rare Disease Drug
Apr 17, 2025 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – The Airline Industry
Apr 10, 2025 by
CPI
Boosting Competition in International Aviation
Apr 10, 2025 by
Jeffrey N. Shane
Reshaping Competition Policy for the U.S. Airline Industry
Apr 10, 2025 by
Diana L. Moss
Algorithmic Collusion in the Skies: The Role of AI in Shaping Airline Competition
Apr 10, 2025 by
Qi Ge, Myongjin Kim & Nicholas Rupp
Competition in U.S. Airline Markets: Major Developments and Economic Insights
Apr 10, 2025 by
Germán Bet