Texas Bank Files for Summary Judgment in CFPB, Cordray Challenge (Nov. 10, 2015)
A small Texas bank is digging in its heels in a legal challenge to the CFPB and the appointment of agency director Richard Cordray. State National Bank of Big Spring, Texas, filed a motion Monday for summary judgment in the U.S. District Court of Appeals for the District of Columbia Circuit, seeking a court ruling that the formation of the CFPB and the recess appointment of Cordray were unconstitutional. In its motion, the bank also requested the court issue a declaration that “all CFPB regulations promulgated during the time of Cordray’s illegal appointment that impacted plaintiffs are invalid and cannot be enforced,” according to the Credit Union Times.
The request for summary judgment is the latest development in the long-running case, which dates back to June 2012, when State National filed a lawsuit challenging the constitutionality of portions of the Dodd-Frank Act—including the provision for the CFPB’s formation—as well as the early 2012 recess appointment of Cordray to head the agency. The suit was dismissed in 2013 by a federal judge who ruled State National did not have legal standing to challenge the law because the bank had not faced any adverse rulings or actions from the CFPB. However, the case was revived this past August, when a three-judge panel from the D.C. Circuit Court reversed the lower court’s ruling, declaring the bank did in fact have standing to challenge the law under which it was subject to regulation.