4 Financial Services Litigation Hot Spots To Watch In 2020

Eric Mogilnicki is quoted in Law360 regarding the constitutionality of the Consumer Financial Protection Bureau (CFPB), in Seila Law v. CFPB, a case that will be heard before the Supreme Court in 2020. Mr. Mogilnicki says, “The irony is that Republican resistance to former CFPB Director Richard Cordray” — who was nominated by former President Barack Obama — “meant he ended up serving six years, while Republican support for President Trump's legal position may mean that his director ends up serving only three years.”

In the longer term, he says that a decision to strike down the for-cause removal provision as unconstitutional could fuel legislative efforts to restructure the CFPB as a multimember commission, but in the nearer term, he said it could help “ensure that the CFPB director is in sync with the other federal banking regulators.” He adds, “Under the current system, there's the potential that there could be a sea change in administrations, but the Bureau remains a holdout. That wouldn't happen anymore [if the for-cause removal provision is struck down], and so it may facilitate consistency among the agencies.”