Oklahoma recently joined a lawsuit seeking to stop parts of the Dodd-Frank Act, the reform of financial regulations signed into law by President Obama in 2010.
Oklahoma Attorney General Scott Pruitt says the law consolidates too much power in the hands of the U-S Treasury Secretary.
Pruitt says, "One person can make a decision to liquidate a bank. And all that protects that bank is 24 hours."
That's the amount of time from when the Treasury Secretary orders a bank's liquidation to when the order would take effect.
Oklahoma joins South Carolina and Michigan in suing to stop Dodd-Frank.
Here's the Attorney General's news release on why the state is joining the suit:
OKLAHOMA CITY – The State of Oklahoma has joined a lawsuit challenging the constitutionality of Dodd-Frank, a sweeping financial overhaul designed to “fix” the financial crisis.
Oklahoma, South Carolina and other attorneys general joined a lawsuit originally filed by National Bank of Big Spring (Texas) in June 2012. The lawsuit, which was filed in U.S. District Court for the District of Columbia, challenges the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act that give unchecked and unlimited power to government regulators and put Oklahoma taxpayers at risk.
Oklahoma Attorney General Scott Pruitt, who has led the discussion over the constitutionality of Dodd-Frank, 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. “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.”
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.
“Dodd-Frank replaces the rule of law with the rule of politics,” South Carolina Attorney General Alan Wilson said. “The new regulations do not stabilize our economy, they create greater uncertainty. As a result, States cannot allow our taxpayers, our investments or the
Constitution to be subject to such financial risk.”
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.
“Dodd-Frank shatters some of the most important rights we have in the marketplace and threatens our investments,” Pruitt said. “Our taxpayers could bear enormous burdens in making up for lost assets that were intended to cover retired state employees or to otherwise fund government services and infrastructure.”