Pryor Cashman attorney Dustin Nofziger, who is a member of the firm's Financial Institutions Group, spoke with Law360 about the Fifth Circuit's decision that cast doubt on the future of the Consumer Financial Protection Bureau (CFPB).
In "A Judicial 'Tidal Wave' Just Walloped The CFPB. Now What?," Dustin told reporter Jon Hill that the decision in Community Financial Services Association of America Ltd. et al. v. Consumer Financial Protection Bureau et al., which held that the CFPB's funding mechanism is unconstitutional, could be "very damaging for the bureau," and that "if the holding in this case is correct, then any enforcement action that the bureau brings has been funded through dollars that were provided in an unconstitutional fashion."
Dustin agreed with other attorneys in the article that the decision will create challenges for CFPB enforcement, saying "I don't see how the bureau could proceed with any kind of enforcement action in the Fifth Circuit right now." And he was skeptical that the agency would have an easy time finding relief on appeal: "It will be tough sledding for them if they want to go to the Supreme Court...This Supreme Court has an emphasis on textualism, and I think it will be receptive to these kinds of arguments."
Read the full article using the link below (subscription may be required).
Resources
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
