Newsroom

The D.C. Circuit court reopened Texas-based State National Bank of Big Springs' suit against CFPB, after the suit was first dismissed by federal court because the bank is not directly supervised by the bureau.

The bank is arguing that CFPB Director Richard Cordray was improperly appointed during a congressional recess and that the bureau should be run by a commission instead of a single director.

The bank's suit was dismissed two years ago because the institution had less than $10 billion in assets, which is the threshold above which institutions are directly supervised by CFPB. The circuit court, however, has now ruled that because CFPB has "broad regulatory authority," the bank does have sufficient legal standing to sue and "is not a mere outsider."

Another claim originally made by the bank – including that the Financial Stability Oversight Council lacks legal authority – was not included in the circuit court's decision to reopen.

NAFCU continues to push for regulatory relief for credit unions from the increasing number of regulations stemming from the Dodd-Frank Act. NAFCU also believes the bureau should exempt credit unions entirely from its rulemaking, and that it should be run by a bipartisan commission.