Banks Gear Up for ‘Larger Assault’ on Regulators After CFPB Win

Banks typically try to avoid direct legal confrontation with their primary regulators. But recent wins over the Consumer Financial Protection Bureau will likely embolden banking trade groups to take on the Federal Reserve, the Federal Deposit Insurance Corp., and the Office of the Comptroller of the Currency, agency watchers and industry attorneys say.

A federal judge in Texas last week ruled the CFPB overstepped its authority by directing examiners to root out discrimination using the agency’s power to crack down on banks and other lenders for “unfair” practices. That decision came weeks after another federal judge in Texas invalidated a ...