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States join lawsuit against Wall Street Reform Act

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OKLAHOMA CITY—Eight other states joined Oklahoma in a multi-state lawsuit challenging the constitutionality of the Dodd-Frank financial act.

The state attorneys general are challenging Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

The act creates the “Orderly Liquidation Authority” and gives power to the Treasury Secretary to liquidate banks with only 24 hours’ notice and with no notice to creditors, including managers of state pension funds.

Attorney General Scott Pruitt said, “Our taxpayers could bear enormous burdens in making up for lost assets that were intended for retired state employees or to otherwise fund government services and infrastructure. The law puts at risk the pension contributions and tax dollars that the people have entrusted us to protect.”

In Sept., Oklahoma, South Carolina and Michigan joined a lawsuit to challenge the law’s constitutionality.

On Wednesday, Alabama, Georgia, Kansas, Montana, Nebraska, Ohio, Texas and West Virginia joined the lawsuit in an amended complaint.

The states are requesting the court invalidate the law because of the unchecked power it gives the government and the unforeseen damage it could do to the economy.