The question has been hanging: Which bank will be the first to put the Consumer Financial Protection Bureau to a legal test? Finally, we have an answer.
"State National Bank of Big Spring will file a lawsuit Thursday afternoon in the U.S. District Court for the District of Columbia. The suit will challenge certain provisions in the Dodd-Frank Act as unconstitutional, with a focus on the creation of the CFPB," writes American Banker’s Rachel Witkowski.
"Dodd-Frank effectively gives unlimited regulatory power to this so-called Consumer Financial Protection Board ... with a director who is not accountable to Congress, the President or the Courts. That is simply unconstitutional" said Jim Purcell, the bank’s chief executive, in a release.
Next question: will any other community banks join the suit?
For the full piece see "Texas Bank to Take Lead in CFPB Lawsuit" (may require subscription).