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U.S. Court Rejects States’ Bid to Defend Consumer Agency - ABI

A U.S. appeals court yesterday rejected separate bids by 16 states and two Democratic lawmakers to defend the U.S. Consumer Financial Protection Bureau in a legal battle that could defang the agency created under former President Barack Obama, Reuters reported. In a brief order, a three-judge panel of the U.S. Court of Appeals for the District of Columbia Circuit denied a request to intervene filed by the states, including New York and Connecticut. The court also rejected similar motions filed by nonprofit consumer groups and two lawmakers, U.S. Senator Sherrod Brown of Ohio and congresswoman Maxine Waters of California, also seeking to defend the board. The court ruled last October that the structure of the agency, charged with guarding consumer finances, was unconstitutional. The agency immediately asked the court to reconsider its decision but the Trump administration could drop the appeal.

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