Manatt consumer financial services practice leader Richard Gottlieb spoke with Law360 on a recent ruling in the Fifth Circuit Court of Appeals that the Federal Housing Finance Agency (FHFA) is unconstitutionally structured. Gottlieb said this decision could suggest that the Fifth Circuit would make a similar ruling against the Consumer Financial Protection Bureau (CFPB). “It’s all but a certainty that the Fifth Circuit will deem the CFPB’s [removal] provision unconstitutional,” he said. “Given this ruling, I think the CFPB is toast in the Fifth Circuit. The threshold question of unconstitutionality and what they did to it here in this [FHFA] case suggests to me that, since the court went somewhat further here, it’s likely to do the same thing in the CFPB case.”
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