The Dodd-Frank Act , a financial regulation reform measure, was signed into law by President Obama in 2010. Three states have filed a lawsuit citing the unconstitutionality of the law, with Oklahoma joining Michigan and South Carolina.
Oklahoma Attorney Scott Pruitt's Concerns about Dodd-Frank Act
Scott Pruitt (R), attorney general of Oklahoma, was been instrumental in initiating the conversations in regards to the sweeping nature of the Dodd-Frank Act. The law as written gives the United States Treasury Secretary the power to liquidate any financial institution -- and 24 hours later, that institution is closed.
Pruitt told KRMG.com , "We must challenge Dodd-Frank to protect Oklahoma taxpayers and our financial stability. The law puts at risk the pension contributions and tax dollars that the people have entrusted us to protect." Pruitt said the law is both unprecedented and grants unchecked authority to one individual, placing community banks and state pension funds at risk, with little hope of recovery should the law be enacted on any of them.
Lawsuit Against Portions of Dodd-Frank Act and Consumer Protection Act
The National Bank of Big Spring (Texas) originated the lawsuit in June 2012, when it was filed in the U.S. District Court of the District of Columbia. Since then, others have joined the suit, including Competitive Enterprise Institute and the 60 Plus Association.
The lawsuit calls into question Title II of the Dodd-Frank Act, the portion that grants the power to liquidate financial institutions with only 24 hour notice by the U.S. Treasury Secretary. The lawsuit also questions Title X, the provision for both the Financial Stability Oversight Council and the Consumer Financial Protection Bureau .
What Other Interested Parties Are Saying
Today at the National Association of Federal Credit Unions , NAFCU, congressional caucus, the Dodd-Frank Act and the Consumer Financial Protection Bureau were among the top five issues discussed. Jeb Hansarling (R), representative from the 5th District in Texas, referred to the CFPB and Dodd-Frank as "legislative drive-by shooting," reported Credit Union Times . Also speaking at the caucus was John Campbell (R), representative from the 48th District in California, related that rewriting the Dodd-Frank Act is on his list of top priorities for the coming year.
South Carolina Attorney General Alan Wilson (R) has related that the Dodd-Frank Act and the Consumer Protection Act, meant to stabilize the economy, have only make it more uncertain.
Bottom Line
The voices against the Title II provision of the Dodd-Frank Act are heavily partisan at this point in time, but it would difficult to argue that a law that gives unchecked power to a solitary position will pass the constitutionality test. If nothing else is certain, the United States government was built on the foundation of checks and balances, and this law sidesteps that foundation.
Smack dab in the middle of the baby boomer generation, L.L. Woodard is a proud resident of "The Red Man" state. With what he hopes is an everyman's view of life's concerns both in his state and throughout the nation, Woodard presents facts and opinions based on common-sense solutions.
