CFPB Seeks To Stop Lawsuit On Cordray Appointment

Posted by Orb Staff on November 28, 2012 No Comments
Categories : Residential Mortgage

12812_cfpb CFPB Seeks To Stop Lawsuit On Cordray Appointment The Consumer Financial Protection Bureau (CFPB) is joining the U.S. Department of Justice (DOJ) in seeking the dismissal of a lawsuit that challenges the constitutionality of the Dodd-Frank Act and of President Obama's Jan. 4 recess appointment of Richard Cordray as CFPB director.

The lawsuit was brought in June by State National Bank of Big Spring, Texas, and the conservative advocacy groups Competitive Enterprise Institute (CEI) and the 60 Plus Association. In September, the Republican attorneys general of Michigan, Oklahoma and South Carolina filed an amended complaint to the lawsuit regarding the constitutionality of the provisions in Title II of Dodd-Frank Act that provides the Treasury Secretary with ‘orderly liquidation authority’ over financial services companies.

‘This lawsuit cobbles together an array of disparate challenges to the constitutionality of three titles of an act of Congress and the constitutionality of the president's appointment of an executive officer,’ says the DOJ in its filing.

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