This afternoon, the Independent Bankers Association of Texas (IBAT), the Independent Community Bankers of America (ICBA) and Texas First Bank of Texas City filed an Emergency Motion to Intervene in the matter of Texas Bankers Association; Rio Bank of McAllen and American Bankers Association v. Consumer Financial Protection Bureau (CFPB).

The goal of this action is to request the ability for IBAT and ICBA to file a second motion to broaden the application of injunctive relief provided to banks, delaying the implementation of Section 1071 of the Dodd-Frank Act until the outcome of Supreme Court arguments regarding the constitutionality of the funding mechanism for the CFPB. As ruled upon on Monday of this week, Judge Randy Crane’s order for injunctive relief only applies to banks that are members of TBA and ABA.

Under no circumstances will this action by IBAT, ICBA and Texas First Bank stand to threaten the ruling that was issued earlier this week. These actions only stand to broaden the application of the ruling.

Patchwork application of 1071 compliance is untenable. While many banks in Texas and throughout the United States are covered by the injunction for members of TBA and ABA, thousands are not.

TBA and ABA have consistently argued for a nationwide injunction, which we acknowledge and appreciate. This week, the organizations took the next step of writing a letter to CFPB Director Rohit Chopra, requesting that the Bureau electively apply the relief to all banks nationwide. As the Bureau argued in court filings for a limited application of any injunction to members of ABA and TBA, there is reasonable doubt that they will respond positively to this request.

IBAT and ICBA believe it is prudent to seek all legal remedies to apply the injunction to as many banks as possible.

In summary, all organizations, including IBAT, TBA, ICBA and ABA, are seeking to ensure that no bank faces irreparable harm from the costly implementation of Section 1071 of the Dodd-Frank Act before the Supreme Court can ultimately decide whether the CFPB’s funding mechanism is constitutional and, as such, whether the CFPB rules were promulgated by an agency that is legitimate under the law.

We are especially grateful to the Doyle family and Texas First Bank for their leadership in this effort. Further, I’d like to recognize the leadership of the IBAT Executive Committee, who took immediate action to support broadening the application of the ruling merely hours after the release on Monday.

As always, we will keep you updated as this unfolds.

Thank you for your support of the Independent Bankers Association of Texas. It is our honor to serve you.

Sincerely,

Christopher Williston

President and CEO

Independent Bankers Association of Texas