The State of Oklahoma has joined a lawsuit challenging the constitutionality of Dodd-Frank, a financial overhaul designed to “fix” the financial crisis, the state’s attorney general announced.
The lawsuit was originally filed by National Bank of Big Spring (Texas) in June 2012. Oklahoma, South Carolina and other attorneys general joined the lawsuit, which was filed in U.S. District Court for the District of Columbia.
It challenges the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which Oklahoma AG Scott Pruitt said give unchecked and unlimited power to government regulators and put Oklahoma taxpayers at risk.
The act was approved following the 2007-2009 financial crisis.
Pruitt said Oklahoma joined the lawsuit to protect Oklahoma’s assets and other state interests.
“Dodd-Frank gives regulators unprecedented and unchecked authority to make significant decisions that affect Oklahoma families and businesses with little, if any, meaningful ability for our state pensions and community banks to recover,” Pruitt said.
South Carolina will join Oklahoma in addition to the original lawsuit’s plaintiffs – Competitive Enterprise Institute, the 60 Plus Association and the Texas community bank.
The plaintiffs are requesting the Court invalidate Dodd-Frank because of the unprecedented, unchecked power it gives the government and the unforeseen damage it will do to America’s fragile economy and taxpayers’ wallets.
The state attorneys general are challenging Title II of the act that gives singular power to the Treasury Secretary to liquidate banks with only 24 hours’ notice and no notice for creditors.
The private plaintiffs are also challenging Title X, the Financial Stability Oversight Council and the Consumer Financial Protection Bureau.
Republicans and Wall Street are fiercely opposed to Dodd-Frank, which was written and passed by congressional Democrats.