DOJ Seeks To Dismiss Legal Challenge To Dodd-Frank Act

Posted by Orb Staff on November 21, 2012 No Comments
Categories : Residential Mortgage

12789_judicial7 DOJ Seeks To Dismiss Legal Challenge To Dodd-Frank Act The U.S. Department of Justice (DOJ) has called for the dismissal of a federal lawsuit that challenges the constitutionality of the Dodd-Frank Act.

Bloomberg News reports that the DOJ is arguing that the parties challenging the legitimacy of the Dodd-Frank Act and the CFPB – State National Bank of Big Spring, Texas, and the conservative advocacy groups Competitive Enterprise Institute (CEI) and the 60 Plus Association – have not shown how the legislation and the agency have created any ‘credible and imminent threat.’

‘Despite the roving allegations of unconstitutionality set forth in the amended complaint, not one of the statutorily authorized actions that plaintiffs speculate might someday cause them harm has yet occurred,’ says Wendy Doty, a DOJ attorney, in a 52-page court filing.

The lawsuit also challenges the legality of President Obama's Jan. 4. recess appointment of Richard Cordray as director of the Consumer Financial Protection Bureau. Sam Kazman, CEI's general counsel, says that the DOJ's actions is trying to silence dissent.

‘We believe that the issues raised in this case are ripe, and that plaintiffs are entitled to adjudicate them,’ says Kazman. ‘Our basis for saying this will be fully set out in our response to the government's motion.’

Register here to receive our Latest Headlines email newsletter




Leave a Comment