Politics & MoneyMortgage

Supreme Court rejects Texas bank challenge to CFPB

Claimed CFPB’s “unprecedented, unchecked power” violates Constitutional separation of powers

The Supreme Court declined to hear a Texas bank’s constitutional challenge to the structure of the Consumer Financial Protection Bureau on Monday.

State National Bank of Big Spring, Texas, filed a suit against the federal government, claiming that the CFPB’s “unprecedented, unchecked power” violates the Constitution’s separation of powers.

The case took several years to reach the nation’s highest court and State National Bank hit a major roadblock in its fight after a judge threw out its motion to intervene in the case between PHH and the CFPB. The bank’s case was on hold while the U.S. Court of Appeals for the District of Columbia Circuit handled the PHH case.

According to a report from Reuters, only eight of the nine justices participated in the decision to hear the case. The court's newest justice, Brett Kavanaugh, recused himself from the case, based on his involvement in PHH’s case against the CFPB while he was on the lower court. 

 

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