11 States Now Part of Legal Challenge to Dodd-Frank

11 States Now Part of Legal Challenge to Dodd-Frank

A total of eleven state attorneys general are now part of the lawsuit that challenges the constitutionality of sections of the Dodd-Frank Act and the Consumer Financial Protection Bureau. The plaintiffs claim that the Act has no effective checks and balances, damages community banks and gives too much power to unelected officials.

The suit was originally filed in June 2012 in the U.S. District Court for the District of Columbia by three plaintiffs: the State National Bank of Big Spring in Texas, the 60 Plus Association and the Competitive Enterprise Institute. In September, the attorneys general of Michigan, South Carolina and Oklahoma joined the suit.

Now eight other state attorneys general are joining the suit. They are all Republicans. The states are Alabama, Georgia, Kansas, Montana, Nebraska, Ohio, Texas and West Virginia.

The defendants in the case include Federal Reserve Chairman Ben Bernanke, the U.S. Treasury and the CFPB. They have  asked for the case to be dismissed.