Texas community bank leads lawsuit against the CFPB

The State National Bank of Big Spring, a community bank in Texas, filed a lawsuit alleging that certain provisions of the Dodd-Frank Act are unconstitutional, particularly the creation of the Consumer Financial Protection Bureau (CFPB), American Banker reports. As the first known community bank to file a lawsuit against the CFPB, State National executives say that the bureau can “essentially determine who gets a home loan…credit card…and a loan for college” with a board that has “unlimited regulatory power” and a director who is “not accountable to Congress, the President or the Courts,” the article said. For more, read the full story.

Consumer Financial Protection Bureau, Dodd-Frank, Federal Regulatory