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Oklahoma Attorney General Scott Pruitt on the lawsuit challenging the constitutionality of Dodd-Frank.
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Eight states have just joined the Dodd-Frank -- -- making it eleven states and -- challenging the constitutionality.
Of the act.
So what is it about Dodd-Frank that they think is illegal joining us now on a Fox Business exclusive one of the people who signed -- to the lawsuit.
Oklahoma attorney general Scott -- good to see -- -- so a lot of folks have a lot of problems with Dodd-Frank we talked to bankers particularly.
We're upset about but what makes you think it's unconstitutional.
What taxpayers are on the hook across the.
So good across the country in eleven states -- you mentioned were very concern about our pension funds.
Because under the law -- -- to the Treasury Secretary has the ability to liquidate -- financial institution.
Analysts a federal judge intervenes in 24 hours that liquidation occurs.
And the standard on appeal is arbitrary capricious and what's even more egregious date and Liz.
Is that pension funds and investors in those liquidate institutions don't receive any notice at all.
Under the law so we believe that there are fundamental concerns about due process.
About separation of powers the consolidation of authority granted into the Treasury Secretary substantial.
And we think violates checks and balances and a very meaningful way.
It's interesting because we just -- David -- MarketWatch complaining that too big to fail wasn't over and and hear -- saying.
That the Treasury's secretary it'd just alone Cingular power to close down -- liquidate a bank with just 24 hours notice.
You know how do you how do you.
Get to both sides of this and say we will eliminate too big to fail.
But we will also make it a fair and due process.
Well it's very troubling I -- I think that unlike what you hear from the administration.
In what you hear from Washington DC.
Dodd-Frank enshrined too big to fail they codified it.
And you know we used to have roughly 121000 community banks in this -- you know were down now to around 7000 or -- The regulatory burden that's been placed upon -- -- -- in this country is substantial and they were not the source of the troubles that we saw in 2008.
And so it's very unfortunate that you -- -- regulatory response power be consolidated in one individual and that's not even mentioning.
-- and -- the kind of authority that's been granted to the CF PB.
Rich record straight -- former attorney general and Ohio.
Has been appointed as you know as a director of the CF PB.
We think that his appointment violates the recess appointments clause dislike the DC court.
Recently applying that that the the appointment to the NLRB by the president.
Violated the recess appointments clause as well so there are concerns about the CF -- this forty greater than that agency in addition to the power granted to the treasury sector.
OK but let let me focus very clearly now on this title two of Dodd-Frank which is your specific objection.
If that was fiddled with that was tweaked if you will.
222 perhaps.
Spread out the power in the authority of the person who who did.
Are causing banks to default would that satisfy you wooded tweaking of Dodd-Frank -- as -- you're trying to -- the whole thing out.
Well -- not mean obviously our challenge is a constitutional facial challenge under title to and we think congress should go back to the drawing board and do -- the right way to ensure.
Judicial review to ensure checks and balances to make sure that due process in separation of powers is maintained that is not existent and the -- we know it.
It needs to be changed that's our challenge and we hope we hope that we had success in congress goes back to the drawing board entitled to have -- heard anything for the administration about this.
All I I think that the the you know have an eleven states now involved in litigation.
It is it is you know what what the Affordable Care Act was the health care.
Dodd-Frank is to finance.
And we got to make sure that when congress -- it passes laws like.
Dodd-Frank of this magnitude that -- done consistent with the constitution.
That hasn't occurred here it's -- win a title one title to entitled -- challenge it's the right thing to do hopefully we'll see congress start again.
Or watch it all thank you Scott good to see you.
Thank you Scott -- is Oklahoma attorney general thanks very much we'll get ready.
