On May 29, the Mayor and City Council of Baltimore filed a notice in the U.S. District Court for the District of Maryland to voluntarily dismiss their case against the CFPB and Russell Vought. As previously covered by InfoBytes, the plaintiffs were seeking to restrain the CFPB from sending appropriated funds back to the Treasury or the Fed (also covered here). Citing the Bureau’s repeated assertions that the CFPB lacked any mechanism to transfer or relinquish control over funds in the Bureau Fund or transfer funds back to the Fed — the plaintiffs’ voluntary dismissal was based on an understanding that the CFPB can only reduce its reserve fund through internal transfers.  In their filing, plaintiffs reserved the right to take further action in the future if the Bureau transfers funds in contradiction to its representations.

Visit our resource center, CFPB Pause: Where From Here?, to stay on top of the latest and what it may mean for the federal and state regulatory and enforcement landscape.