Community banks fear weight of CFPB's reach
The banking sector in Texas sees a new lawsuit filed against the Consumer Financial Protection Bureau by one of its own state banks as a natural reaction to unfinished Dodd-Frank rules and fears that loan products could be banned by the CFPB.
Last week, a Texas community bank and two nonprofits filed suit against the CFPB, claiming the bureau's structure and the president's means for appointing Richard Cordray CFPB director violated provisions of the U.S. Constitution.
State National Bank of Big Spring is the lead plaintiff in the case. The 60 Plus Association, a nonprofit that represents the interests of senior citizens, and the Competive Enterprise Institute, which advocates for limited government, are the remaining two plaintiffs.