Haven’t heard much about the Dodd-Frank law lately. Unless you are a far left progressive, you know what a disaster this law is. Named after two of the most corrupt members the U.S. Senate and Congress has ever seen (Chris Dodd and Barney Frank), there is finally someone challenging it. According to Power Line , a lawsuit filed this past week challenges the constitutionality of Dodd-Frank.
Brought in the U.S. District Court in Washington, D.C., the case is styled State National Bank of Big Springs and others v. Timothy Geithner and others. The other defendants include the Treasury Department, the Consumer Protection Bureau, the Board of Governors of the Federal Reserve, the Federal Deposit and Insurance Corporation, and the Financial Oversight Council.
The plaintiffs are represented by Boyden Gray of Boyden Gray & Associates, along with the firm of O’Melveny & Myers and the Competitive Enterprise Institute. Gray served as White House Counsel under the first President Bush. Hans Bader, a Power Line reader with whom I have communicated over the years, is on the pleadings as one of the counsel for the Competitive Enterprise Institute.
The lawsuit’s major claim is that the formation and operation of the Consumer Financial Protection Bureau (CFPB) violates the constitution because its director (or czar) is not accountable to Congress or the President, and the decisions of the agency are not even subject to judicial review. The CFPB escapes meaningful congressional oversight because its budget – some $400 million – comes from the Federal Reserve. As for the president, he cannot overrule actions taken by the CFPB, and can only remove the director “for cause,” e.g., inefficiency, neglect of duties, or malfeasance, not disagreement over substance. Finally judicial review is limited because courts are required by the legislation to defer to the CFPB regarding the meaning or interpretation of any provision of federal consumer financial law.