Cheat Sheet: What CFPB Constitutionality Ruling Means for Banks

From: American Banker

By John Heltman and Kate Berry and Rob Blackwell

WASHINGTON – Be careful what you wish for.

That’s the lesson for banks and other financial institutions that have long sought to win a check against the Consumer Financial Protection Bureau’s power after the U.S. Court of Appeals ruled Tuesday that its structure is unconstitutional.

Far from a victory for the industry, the court’s solution – allowing the president to dismiss a CFPB director for any reason – arguably makes the situation worse by putting the CFPB directly under the control of the White House. As a result, the CFPB is effectively no longer an independent agency.

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