McGuireWoods senior counsel
Joseph Reilly commented in an
Oct. 1 American Banker
article about potential litigation challenging the Consumer Financial
Protection Bureau’s actions following CFPB Director Kathy Kraninger’s
statement that the agency’s single-director structure is unconstitutional.
The article noted Kraninger’s comment that “litigation over this question
has caused significant delays to some of [the CFPB’s] enforcement and
Reilly cautioned that “this is potentially much ado about nothing here,”
but added Kraninger’s comments do create uncertainty in the interim.
Discussion also turned to
CFPB v. PHH Corp., a 2018 D.C. Circuit
opinion in which then-Judge Brett Kavanaugh — now a justice on the U.S.
Supreme Court — dissented. Kavanaugh noted that CFPB-related provisions
under the Dodd-Frank Act would be largely unaffected by a decision to
remedy the for-cause removal provision. Reilly said, “Part of Kavanaugh’s
opinion explains that when agencies have been found to be structured
unconstitutionally, the impact on pending matters has been relatively