The Supreme Court has declined to hear a lawsuit challenging the constitutionality of the Consumer Financial Protection Bureau (CFPB), but don't expect the issue to go away.
The State National Bank of Big Spring, Texas, along with the Competitive Enterprise Institute (CEI) and the 60 Plus Association, were petitioners in the case known as State National Bank of Big Spring v. Mnuchin.
"State National Bank brought this case because we are concerned about the threat that CFPB poses to us and our customers," says Jim Purcell, chairman of the board and CEO of State National Bank of Big Spring. "Big banks might be able to cope with CFPB rules, but for us and banks like us, the costs and red tape spun out by this agency could become a slow death sentence. We are disappointed in the Supreme Court's decision not to take our case, but we are also hopeful that these constitutional issues will still be examined in some future lawsuit."
CEI's Sam Kazman acknowledges that trying to get SCOTUS to take a case is always a longshot.
"But [still] it was a big, big disappointment, both for us and for this tiny but very gutsy bank ... and the 60 Plus Association as well," Kazman admits. "Anyone else can challenge CFPB's constitutionality up to the Supreme Court, and in fact there are several cases coming out of different parts of the country that are likely to do exactly that.
"So even though we got turned down, I think that the issue itself is going to be resolved on the merits – and I suspect [it to be resolved] in our favor sometime in the near future."
The Consumer Financial Protection Bureau was created after the 2010 passage of the Dodd-Frank Financial Wall Street Reform and Consumer Protection Act. President Barack Obama selected Elizabeth Warren to help set up the agency. Warren is now a U.S. senator for the state of Massachusetts.