Constitutionality of Dodd-Frank Law Challenged by Three States
Three states have joined a lawsuit that challenges the constitutionality of a portion of the Dodd-Frank law.
The attorneys general of Oklahoma, South Carolina and Michigan filed a complaint last week, saying a portion of the 2010 law–the Orderly Liquidation Authority–gives the Treasury secretary the power to liquidate any financial institution threatens consumers’ pension contributions.
In the complaint, the states said the process had little judicial oversight and “denies the subject company and its creditors constitutionally required notice and a meaningful opportunity to be heard before their property is taken.”
These states join the original plaintiffs in a lawsuit that was filed in June by a senior citizen group, the 60 Plus Association; the State National Bank of Big Spring, Texas; and a think-tank, the Competitive Enterprise Institute.
Political analysts are quick to point out that all three attorneys general in this suit are Republicans. The Dodd Frank bill was passed almost entirely from support of Democrats.