Pryor Cashman Counsel Dustin Nofziger, a member of the Financial Institutions Group, spoke with Law360 and the American Banker following the U.S. Court of Appeals for the Second Circuit's ruling that upheld the constitutionality of the Consumer Financial Protection Bureau's (CFPB) funding.
In Law360's "2nd Circ. Says CFPB Funding Structure Is Constitutional," Dustin looks ahead to how the Circuit Court decision could affect the agency in other contested enforcement actions:
"I anticipate that the Bureau will make the argument that [Thursday's] decision weighs in favor of CFPB enforcement actions not being stayed in the Second Circuit or elsewhere," said Dustin Nofziger, who is a member of the financial institutions group at Pryor Cashman LLP.
"However, I think that the argument for staying cases where the appropriations clause issue is put forth as a defense is very strong," Nofziger added. "I mean, at this point, why should a court weigh in on this issue before the Supreme Court does?"
In the American Banker's "Second Circuit rules that CFPB's funding is constitutional," Dustin specifically calls out the ruling's role in a circuit split (between the Second and Fifth Circuits):
"The Second Circuit is staking out a position that in their view there isn't any support for the Fifth Circuit's reasoning. Between the Fifth Circuit and the Second Circuit, someone is wrong," said Dustin Nofziger, an attorney at the law firm Pryor Cashman.
Read both articles in full using the links below (subscription may be required).
Resources
- [Law360] 2nd Circ. Says CFPB Funding Structure Is Constitutional
- [American Banker] Second Circuit rules that CFPB's funding is constitutional
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
