Several states joined a lawsuit last week that challenges the constitutionality of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Oklahoma, South Carolina and Michigan are suing over a specific authority having to do with pension contributions they say puts those contributions at risk. 

The states join the State National Bank of Big Spring, Texas; the 60 Plus Association; and the Competitive Enterprise Institute in the suit, originally filed in June. 

“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,” Oklahoma Attorney General Scott Pruitt said.

Title II of Dodd-Frank, the subject of the lawsuit, allows the Treasury Secretary to liquidate financial companies with just 24 hours notice, the states and groups assert, leaving the companies without any legal recourse. 

“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. Dodd Frank replaces the rule of law with the rule of politics,” Attorney General of South Carolina, Alan Wilson, said.

Written by Elizabeth Ecker