Major Constitutional Lawsuit Filed Against Dodd-Frank is Critical of Bill’s Scope

A small community bank in Texas is challenging the constitutionality of the Dodd-Frank financial reform.

The State National Bank of Big Spring, Texas, filed a lawsuit in D.C. Circuit Court challenging the ability of regulators to designate banks as systemically important. It also criticized the newly created Consumer Financial Protection Bureau’s lack of institutional oversight.

“No other federal agency or commission operates in such a way that one person can essentially determine who gets a home loan, who can get a credit card, and who can get a loan for college,” State National Bank CEO Jim Purcell said Thursday in a release. “Dodd-Frank effectively gives unlimited regulatory power to this so-called Consumer Financial Protection Board, also known as CFPB, with a director who is not accountable to Congress, the President, or the Courts. That is simply unconstitutional.”

 More