Three States Join Lawsuit Against Dodd-Frank
Three states have joined a lawsuit challenging the constitutionality of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
On Sept. 20, South Carolina, Michigan, and Oklahoma joined a lawsuit challenging the legality of the financial reform act. Their complaint argues that the “Orderly Liquidation Authority” granted to the Treasury Secretary under Title II of the act “violates the separation of powers.”
In a conference call with reporters on Friday, Scott Pruitt, Oklahoma’s attorney general, said legislators used the 2008 financial crisis “to concentrate power in Washington, DC.”
He argued that the bill is incompatible with the U.S. constitutional system and its framework of checks and balances.
The lawsuit, he said, is about the “fundamental concept of making sure that our Constitutional framework is upheld.”
The act gives the treasury secretary the power to liquidate financial institutions “with little or no advance warning, under cover of mandatory secrecy, and without either useful statutory guidance or meaningful legislative, executive, or judicial oversight,” the filed complaint states.
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