Jefferson City, Mo. – Attorney General Josh Hawley filed a brief in federal court arguing the Consumer Financial Protection Bureau (“CFPB”) is unconstitutional. Joined by 14 other states, the brief was filed ahead of oral arguments in the D.C. Circuit Court of Appeals.
The CFPB was created during the Obama Administration and exercises sweeping regulatory authority over the financial-services industry, including local banks. In October 2016, a panel of the D.C. Circuit found that the CFPB violates the Constitution’s separation of powers because the agency is headed by a single director not accountable to any elected official and who can be removed under only extraordinary circumstances.
On February 16, 2017, the full court of appeals agreed to rehear the case en banc. In response, Hawley’s office drafted an amicus brief supporting the panel’s original judgment.
“The CFPB’s out-of-control regulations have been hurting Missourians for years,” Hawley said. “And now a court has found the agency’s structure unconstitutional. Government bureaucracies shouldn’t be able to impose burdensome regulations on small business and local banks without political accountability. Reforming this blatant violation of the separation of powers is essential to preserving the Constitution’s model of accountable, democratic government.”