Federal Judge Dismisses Constitutional Challenge to CFPB (Consumer Financial Protection Bureau)
Source: American Lawyer
A Washington federal judge dismissed a constitutional challenge to the Consumer Financial Protection Bureau, finding the plaintiffs didn't have standing to sue because they failed to show they suffered harm.
The plaintiffs argued the Dodd-Frank Act violated the separation of powers by "delegating effectively unlimited power" to the bureau and another entity created under the Dodd-Frank Act, the Financial Stability Oversight Council. U.S. District Judge Ellen Segal Huvelle found the plaintiffs failed to allege actual injuries and that claims of future injuries were too speculative to meet the legal standard for being able to sue.
Texas-based State National Bank of Big Spring, think tank Competitive Enterprise Institute and advocacy group the 60 Plus Association sued the U.S. Department of the Treasury and the bureau last June. They were later joined by the attorneys general of Alabama, Georgia, Kansas, Michigan, Montana, Nebraska, Ohio, Oklahoma, South Carolina, Texas and West Virginia.
Lead counsel for the private plaintiffs, C. Boyden Gray of Boyden Gray & Associates, filed a notice of appeal this afternoon, taking the dispute to the U.S. Court of Appeals for the D.C. Circuit.
Read more: http://www.americanlawyer.com/digestTAL.jsp?id=1202613682764&Judge_Dismisses_Constitutional_Challenge_to_CFPB&slreturn=20130702192645
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