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September 21, 2012 at 09:04 AM
Three state attorneys general have joined a lawsuit challenging the constitutionality of the Orderly Liquidation Authority under the Dodd-Frank Act, arguing that giving the Treasury secretary the power to liquidate any financial institution threatens consumers’ pension contributions.
Oklahoma, South Carolina and Michigan on Thursday joined the lawsuit filed in the U.S. District Court for the District of Columbia that asks the court to review the constitutionality of the Orderly Liquidation Authority, established under Title II of Dodd-Frank.
The three states, whose attorneys general are Republican, join the original plaintiffs in the lawsuit: State National Bank of Big Spring, Texas; the 60 Plus Association; and the Competitive Enterprise Institute (CEI), a group that advocates for limited government. The three original plaintiffs’ suit challenges the Consumer Financial Protection Bureau’s (CFPB) formation and operations. The CFPB was created under Dodd-Frank.
Sam Kazman, CEI’s general counsel, said in a statement, “Despite being called a reform measure, Dodd-Frank poses a massive threat to consumers, companies and the economy of this country. The scope of that threat is clearly demonstrated by the decision of these three states to join our lawsuit, and we welcome their participation.”
