WASHINGTON, D.C. — The Solicitor General yesterday filed its brief on behalf of the Consumer Financial Protection Bureau (CFPB) in Consumer Financial Protection Bureau v. Community Financial Services Association of America, the case in which the Fifth Circuit Court of Appeals deemed the funding mechanism of the CFPB to be unconstitutional.
In response to this announcement from the Solicitor General, Demand Progress Education Fund Communications Director Maria Langholz issued the following statement:
“Given the extremely weak legal reasoning and complete absence of precedent to support the Fifth Circuit’s radical ruling against the CFPB, it is clear the Supreme Court must overturn it. The Second Circuit Court of Appeals, the D.C. Circuit Court of Appeals, and six district courts have all declared that the funding of the CFPB is constitutional.
“At a time where weakened regulations and oversight led to the recent collapse of Silicon Valley, Signature, and First Republic banks, we cannot allow for our housing market, and broader financial markets, to plunge into chaos by calling into question years of CFPB rulemaking and enforcement. The campaign by predatory lenders and their allies in Congress to hobble the CFPB is exactly the wrong prescription for a shaky financial industry.
“Predatory lenders, Wall Street, and big corporations have tried to tear down the CFPB through litigation and legislation because the CFPB is so effective at cracking down on abusive financial practices and at protecting consumers. Despite these efforts, the CFPB has become one of our most effective and popular agencies, winning over $14 billion for millions of Americans cheated by the financial industry.”