Legal News

Michigan, Oklahoma, and South Carolina Join Challenge against Dodd-Frank Law
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

Last Thursday, Michigan, Oklahoma, and South Carolina joined a lawsuit filed in June by Competitive Enterprise Institute, a Texas bank and senior citizen’s group, challenging the Dodd-Frank law. The lawsuit claims the 2010 Dodd-Frank law to be unconstitutional in as much as it empowers the Treasury secretary to order the liquidation of failing financial institutions. The complaint, filed in the U.S. District Court for the District of Columbia gained greater importance after the President passed a measure earlier this year, which exempts the appointment of the Treasury secretary from Senate approval.

The Dodd-Frank law, passed in 2010 in response to the financial crises and economic recession empowers regulators with greater authority to oversee financial institutions than ever before. Significantly, Republican presidential candidate Mitt Romney has also pledged to repeal Dodd-Frank.

However, it seems, senior Republicans and states are not waiting around to see that pledge turn to reality, but taking their own steps to check the financial oversight of the Consumer Financial Protection Bureau.

  
What
Where


Alan Wilson, the attorney general of South Carolina said, “The new regulations do not stabilize our economy, they create greater uncertainty … Dodd Frank replaces the rule of law with the rule of politics.”

On Friday, Wilson told reporters that state pension funds would be difficult to recover if assets were invested in a business shut down using Dodd-Frank. At the heart of the issues and controversies around Dodd-Frank is a provision that lets the Treasury secretary call for the liquidation of any financial entity, whose failure is deemed to threaten the economic stability of the country. While the apparent goal is to prevent the government from being forced into future business bailouts, states argue that the process would restrict a business and its creditors from being heard.

The initial complaint filed by the Competitive Enterprise Institute and others claim that the Consumer Financial Protection Bureau and the Financial Stability Oversight Council are unconstitutional, because there are insufficient checks over their authorities exercised by other branches of the government.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




The lawsuit also brings into question the appointment of Richard Cordray as the CFPB director, which was made by President Obama during a recess, and effectively bypassed mandatory confirmation by the Senate.





 

Interesting Legal Sites You May Like


BCG FEATURED JOB

Locations:

Keyword:



Search Now

General Municipal Law Attorney with land use experience

USA-CA-Oakland

Oakland office of our client seeks general municipal law attorney with experience advising public ag...

Apply Now

Senior Land Use Attorney with experience

USA-CA-San Francisco

San Francisco office of our client seeks senior land use attorney with 7+ years of experience. The c...

Apply Now

Immigration Attorney with portable business

USA-VA-McLean

McLean office is seeking an immigration attorney with $500,000+ in portable business.

Apply Now

Attorney with 1-2 years of business immigration experience

USA-IL-Chicago

Chicago office of our client seeks attorney with 1-2 years of business immigration experience. The c...

Apply Now

RELEVANT JOBS

LITIGATION ATTORNEY

USA-CA-Emeryville

Boutique East Bay litigation defense firm is seeking a junior to mid-level attorney. Candidates for ...

Apply now

Managing Director, Litigation Finance Investments

USA-FL-Tampa

Title                ...

Apply now

Contract Associate

USA-CA-Sausalito

Seeking lawyer with at least 2 yrs experience in complex real estate transactional matters, with wil...

Apply now

Products Liability & Mass Tort Litigation Associate

USA-GA-Atlanta

The candidate must have 1- 5 years of civil litigation experience, preferably with some background i...

Apply now

Most Popular

SEARCH IN ARCHIVE

To Top