Attorneys General from three states—Oklahoma, South Carolina, and Michigan—have joined a lawsuit challenging the constitutionality of the Dodd-Frank Act and are asking the U.S. District Court for the District of Columbia to stop the creation of an Orderly Liquidation Authority established under Title II of the legislation.
In June, the Competitive Enterprise Institute and co-plaintiffs State National Bank of Big Spring, Texas, and the 60 Plus Association, which bills itself as “the conservative alternative to the AARP,” filed the suit. The centerpiece of its claim is that the Consumer Financial Protection Bureau has too much independence because Congress cannot set its budget. Other complaints are that the President cannot remove the CFPB director except in special circumstances and that the courts must give CFPB decisions extra deference.
