Three States Join Dodd-Frank Challenge

Michigan, Oklahoma and South Carolina sign on to suit contesting constitutionality of 2010 law.

Oklahoma, along with South Carolina and Michigan, joined a lawsuit challenging the constitutionality of the 2010 Dodd-Frank Act that overhauled financial regulation and created the Consumer Financial Protection Bureau.

The states, in an amended complaint filed yesterday in federal court in Washington, said they’re only challenging the portion of the Dodd-Frank law that empowers the Treasury Secretary to order a liquidation of a financial company whose collapse may threaten the stability of the banking system.

‘Pick Winners’

“Dodd-Frank empowers un-elected federal bureaucrats to pick winners and losers, liquidate entire companies, and decide which contracts are kept and which are broken, without congressional oversight or proper judicial review,” South Carolina Attorney General Alan Wilson said in an e-mailed statement.

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