Tuesday, March 26, 2013

“Obamacare for the Financial Sector” Is Challenged by the States

A lawsuit has been filed challenging the Dodd-Frank Act. 11 states - Alabama, Georgia, Kansas, Michigan, Montana, Nebraska, Ohio, Oklahoma, South Carolina and West Virginia – joined the lawsuit originally filed by the State National Bank of Big Spring, the 60 Plus Association and the Competitive Enterprise Institute.

The provision of  Dodd-Frank challenged is Title II, which gives the Treasury Secretary Orderly Liquidation Authority, which allows liquidation of banks with only 24 hours notice and no notice to stakeholders.  The Treasury Secretary can choose which companies’ creditors to bail out with minimal judicial review.

Alabama Attorney General Luther Strange explained, “Dodd-Frank is Obamacare for the financial sector. It replaces the rule of law with the rule of politics and gives authority to unaccountable federal regulators to make decisions that will affect Alabama families and businesses.

West Virginia Attorney General Patrick Morrisey said, “The Orderly Liquidation Authority allows un-elected Washington bureaucrats to pick winners and losers among affected creditors, entirely abandoning the rule of law.”

Georgia Attorney General Sam Olens added, “Dodd-Frank violates basic principles of separation of powers and government that is accountable to the people... By joining this lawsuit, we are standing up for the Constitution, standing up for our local communities, and protecting our State’s finances.”

You can learn more about this lawsuit from the Attorneys General of Alabama, Georgia and West Virginia who are speaking at the RNLA’s National Policy Conference on April 26.

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