3 States Sign On to Challenge Dodd-Frank Law
Posted Sep 24, 2012 5:52 AM CDT
By Molly McDonough
Attorneys general from Michigan, Oklahoma and South Carolina have joined a lawsuit that challenges the constitutionality of the 2010 Dodd-Frank law overhauling financial oversight practices in the United States and creating the Consumer Financial Protection Bureau.
The conservative Competitive Enterprise Institute and a small bank in Texas filed the suit in June, Reuters reports. Critics maintain regulations under Dodd-Frank, especially provisions that give the Treasury secretary authority to call for the liquidation of a financial entity, are unconstitutional.
South Carolina Attorney General Alan Wilson said in a statement that Dodd-Frank's regulations "do not stabilize our economy, they create greater uncertainty."
"Dodd-Frank replaces the rule of law with the rule of politics," Wilson said.
Reuters and Bloomberg note that the complaint filed late last week was amended to include the states' challenge to the liquidation authority, but says the states did not sign on to challenges against the consumer protection bureau and the oversight council.