Olens takes on another federal overreach: Dodd-Frank
In Washington, Congress passes and the president signs a vast expansion of federal power over a large and critical industry.
In corporate boardrooms, business executives believe that law usurps their rights. In state capitals, attorneys general believe it infringes on states’ sovereignty and puts them at great financial risk. The two groups come together and sue to overturn the law.
A recap of the Obamacare lawsuit decided by the U.S. Supreme Court last summer? Yes, but it’s also the lead-up to another legal battle stemming from Democrats’ dominance of Washington in 2009 and 2010.
Last month, Georgia joined a lawsuit seeking to overturn major portions of the Dodd-Frank financial reform law of 2010. The law’s stated intent was to avoid failures of “too big to fail” banks and subsequent market panics, of the kind we saw in autumn 2008.
There are good arguments that the law’s authors got the policy wrong, and enshrined “too big to fail” in federal law rather than preventing it. But this lawsuit is not about policy preferences, state Attorney General Sam Olens said in a recent interview.
“We do not disagree that the consumer needs to be protected,” he said. “We feel the laws and regulations must be consistent with the Constitution.”
Among other things, the suit contends the law robs financial firms — including, critically, ones in which Georgia’s pension funds have investments — of due process and allows federal regulators to “treat similarly situated creditors differently” as part of its Orderly Liquidation Authority.
The problem would begin, Olens said, when federal regulators decide a financial firm is in danger of failing and should be liquidated:
“Upon which [regulators] give notice to the institution and you have 24 hours to have a federal judge issue a ruling. If the judge does not issue a ruling within 24 hours, [their] action is affirmed.
“The ruling and the proceeding are closed to the public. The filings are closed to the public. And you are limited to an ‘arbitrary and capricious’ standard to thereafter appeal the decision, which is also closed to the public.”
Worse, Olens continued, even a successful appeal could be too late, because the law blocks courts from delaying the firm’s liquidation. “So it violates numerous separation of powers issues in our Constitution,” he said.
As a firm was liquidated, the law could result in Georgia and other creditors losing their priority over others — as when Chrysler made some bondholders, including Indiana’s pension fund, secondary to labor-union pension funds and other unsecured creditors during its 2009 bankruptcy proceeding. That, Olens said, would violate Georgia’s property rights.
If it seems like Olens and other state attorneys general are more active in opposing federal actions than their predecessors did, from EPA rules to presidential recess appointments, “that’s because you’re seeing a lot more out of Washington, D.C., than you ever have before,” said Alan Wilson, attorney general for South Carolina, which is also a party to the Dodd-Frank lawsuit. (The other nine state plaintiffs include Alabama, Michigan, Ohio and Texas; there are also three private-sector plaintiffs.)
“I do believe it’s our role to challenge [the federal government] when it does overstep,” Wilson argued during a joint press conference with Olens last week, “and that’s what we’ll continue to do.”
– By Kyle Wingfield
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298 comments Add your comment
DebbieDoRight - A Do Right Woman
March 4th, 2013
4:23 pm
OK — so either its taboo to say “Busty” to rhyme with Dusty on this blog OR
Kyle’s mad because I told the truth about “conservative values!”
Either way — Later Gators.
Dusty
March 4th, 2013
4:28 pm
CHEESY’s got NAIVETY?
Is that what they are calling it now?
MarkV
March 4th, 2013
4:32 pm
Dusty @4:21 pm: “Welcome JDW & POLITICO . Sorry though. All the good insults have been used by your buddies.”
Tiberius, Lil’ Barry and Aesop should feel slighted! Dusty does not consider their insults to be good!
JDW
March 4th, 2013
4:35 pm
@Dusty…”CHEESY’s got NAIVETY? ”
Nope you missed the point…I could tell you but it would be too easy…go back and read the posts.
DebbieDoRight - A Do Right Woman
March 4th, 2013
4:35 pm
Uggghh!! It was a GREAT joke too! And Kyle went and RUINED it with his “scrubbers”! It wasn’t dirty, wasn’t profane, wasn’t even rude — it was complimentary, (I posted a picture of a young attractive Charo for the Busty part of Dusty).
ti’s amazing!
Politico
March 4th, 2013
4:36 pm
Dusty
Speaking of school have you finally done your homework to figure out that the Dems don’t have the majority in the House.
You surely flunked that test, but do carry on big Dust
Tiberius - pulling the tail of the left AND right when needed
March 4th, 2013
4:39 pm
The ability of leg-humpers to repeat the same thing over and over while not even commenting on the main topic knows no bounds.
Dusty
March 4th, 2013
4:50 pm
Dusty? Rusty? Busty? Musty been one of those Russkys from the Steppes! That Debbie is from far out, no doubt!! Kyle gave a shout?? Huh??
But KYLE (if U R around),.if the”electronics” here get any slower I will be posting yesterday. Could you give it an aspirin or something?
Oh and, MarkV, That’s correct. Dems here are the **** insulters. They are the best! Congrats!
Now, out to dinner. Whoopee!! No cookin’ & burnin’ tonight! Hmmyummy
JDW
March 4th, 2013
4:52 pm
@Tibeirus…”The ability of leg-humpers to repeat the same thing over and over while not even commenting on the main topic knows no bounds.”
Indeed…see above for prime example.
Tiberius - pulling the tail of the left AND right when needed
March 4th, 2013
4:56 pm
JDW, once again your English comprehension is lacking (as usual).
I have commented multiple times on today’s topic.
All you’ve done is thrown insults since you came on board today.
Feel fee to back pedal like your buddy MarkV does.
indigo
March 4th, 2013
5:10 pm
Tiberius – 4:39 “to repeat the same thing over and over”
And, no one here illustrates that better than you.
Tiberius - pulling the tail of the left AND right when needed
March 4th, 2013
5:19 pm
Indigo, I will remind you as well that you may not parse nor cut and paste my comments in order to make your case.
That is the mark of a liar.
Hillbilly D
March 4th, 2013
5:22 pm
“There is nobody at the CIA who could tell you more personally about Kim Jong Un than Dennis Rodman, and that in itself is scary.” — Col. Stephen Ganyard, USMC (ret.)
Lil' Barry Bailout - OBAMAPHONE!!!
March 4th, 2013
5:26 pm
I suggest to all of my fellow bloggers that you clean up your language and at least make an attempt to comment on the topic at hand or something tangentially related. The last page or two of comments have devolved into something ugly that might be expected at a Dekalb County school board meeting, not from a group of reasonable, thoughtful adults.
Tiberius - pulling the tail of the left AND right when needed
March 4th, 2013
5:35 pm
Hillbilly D @ 5:22 :LOL: :LOL: :LOL:
Tiberius - pulling the tail of the left AND right when needed
March 4th, 2013
5:35 pm
Darned CAPS!
Aquagirl
March 4th, 2013
5:47 pm
The last page or two of comments have devolved into something ugly that might be expected at a Dekalb County school board meeting, not from a group of reasonable, thoughtful adults.
Oh I agree completely….When people start hollering the cut ‘n paste is THEIRS, dammit, that is some serious Copelin-Wood territory.
independent thinker
March 4th, 2013
5:53 pm
Glad to see the wingnuts running wild on this blog showing why this is the place for the stupid party to show its vast intelligence.
MarkV
March 4th, 2013
6:00 pm
Tiberius @4:56 pm “Feel fee to back pedal like your buddy MarkV does.”
Poor Tiberius, one might even feel sorry for him, the last few days have not been kind to him, and he is trying so hard to strike back, but does not have the intellectual capacity to do so with any effect.
First he got caught with his pants down when he did not know the difference between socialism and communism, then arrogantly stood his ground and compounded the error by calling Karl Marx “father of socialism.” As a moral coward he is, instead of admitting the error or even just dropping the issue he again doubled down by writing about my pointing out his error “If it’s not worded precisely in his personal dictionary, it can’t possibly be true.” That was more than pathetic, but on par for Tiberius.
Eager for revenge, in the next blog Tiberius jumped on my claim that that one could borrow and spend himself out of debt with a demand that I showed that for a country with debt of 80% of GDP. And to cap it up, accused me of lying when I answered that I had made no such claim. Except that, as usual, he was unable to show that I did.
A sad, sad case.
JDW
March 4th, 2013
6:03 pm
@Tiberius…”All you’ve done is thrown insults since you came on board today.”
Insults? Nope, have not written a one…commented on some remarks made by another poster that fit the bill….it is kind of like holding up a mirror so that one can see the true state of oneself.
Lil' Barry Bailout - OBAMAPHONE!!!
March 4th, 2013
6:06 pm
MarkV heard the radio commercial advertising a secret method for converting debt into wealth…and called.
JDW
March 4th, 2013
6:09 pm
@MarkV…good points all but you left out my favorite…did you know that our self appointed Constitutional Authority actually posted a reference to the Federal Budget Requirements set forth in the Constitution, in a most unflattering manner I might add? We have yet to learn which Constitution because as any self taught Constitutional Scholar should know there are no such requirements in the US Constitution.
MarkV
March 4th, 2013
6:11 pm
JDW @ 6:09 pm
Thanks for letting me know. I missed that, but cannot say I am surprised.
md
March 4th, 2013
6:41 pm
“When people start hollering the cut ‘n paste is THEIRS, dammit, that is some serious Copelin-Wood territory.”
Now don’t go and hurt ole Joe’s feelings by leaving him out…..
Tiberius - pulling the tail of the left AND right when needed
March 4th, 2013
6:56 pm
JDW has now joined the ranks of liars.
All too typical.
RC--apoi
March 4th, 2013
7:12 pm
Well, I agree with Sister Dusty, whatever she said. When she told us it was disrespecting the office of the President of the USA to criticize President Bush, I agreed. When she told us later it was OK to criticize President Obama, I agreed. Anyhow, don’t expect me to go against her. She’s a great customer for that
cheapmodestly priced wine sheguzzlessips and helps keep me in a job, if you want to know the truth. Whatever she says is OK by me.bluecoat
March 4th, 2013
7:22 pm
Tread softly-If the cost of beef goes up add more horse meat.
Aesop's Fables and other Lib Economic Theories
March 4th, 2013
7:24 pm
Next time you hear a pinko screeching on about global warming or some other such madness, just remember the suckwester and the total hysterical BS that accompanied it.
Who are they kidding?
Lil' Barry Bailout - OBAMAPHONE!!!
March 4th, 2013
8:14 pm
Obama not bluffing over Iran military threat, Biden tells Aipac
http://www.guardian.co.uk/world/2013/mar/04/biden-aipac-speech-iran-threat
———————–
After bluffing and getting called on the sequester, Obozo is not to be taken seriously.
Shine
March 4th, 2013
8:19 pm
I trust neitehr but i trust Dodd Frank a lot more than i do some 4 chin republican.
JDW
March 4th, 2013
8:28 pm
@Tiberius…”JDW has now joined the ranks of liars.”
Well you are half right…there is a liar amongst us…
Tiberius – pulling the tail of the left AND right when needed
February 25th, 2013
3:03 pm
Oh, Aynie Sue, a little Constitutional education is in order, missy.
The House is required to pass a budget (actually, the Congress is, but we’ll get to that later).
Tiberius - pulling the tail of the left AND right when needed
March 4th, 2013
9:00 pm
Ah, JDW the liar just repeats the same old response that has nothing to do with the subject at hand.
When you got nothing, deflect. When caught, backpedal. When exposed, lie.
You gotta wonder why anyone would do business with someone who lies like JDW does,.
JDW
March 4th, 2013
9:12 pm
@Tibeirus….
Nice try but there you are in black and white “Mr. Self Appointed Constitutional Authority”
So to summarize, I point out your shortcoming, you call me a liar, I post incontrovertible evidence to the contrary and you respond with
Ah, JDW the liar just repeats the same old response that has nothing to do with the subject at hand.
When you got nothing, deflect. When caught, backpedal. When exposed, lie.
You gotta wonder why anyone would do business with someone who lies like JDW does,.
Aesop's Fables and other Lib Economic Theories
March 4th, 2013
9:38 pm
Airports have denied a claim by Janet Napolitano, the secretary of homeland security, that the sequester is already causing long delays for travelers at security screening checkpoints.
The goons are taking a hell of a beating right now.
Aesop's Fables and other Lib Economic Theories
March 4th, 2013
9:41 pm
Arne Duncan, the secretary of education, was widely criticised last month for saying that teachers were already being laid off because of the cuts, a claim without evidence. The Washington Post’s Fact Checker blog awarded the claim four Pinocchios – its highest rating for falsehood.
A major victory for the Repugs to not have caved yet.
Cherokee
March 4th, 2013
9:45 pm
“Airports have denied a claim by Janet Napolitano, the secretary of homeland security, that the sequester is already causing long delays for travelers at security screening checkpoints. ”
As someone on another blog would say – nothing but made up Drudgey spam….
Cherokee
March 4th, 2013
9:48 pm
Kind of funny how the Wasthington Post fact checker is now the final arbiter of all discussions. When they pointed out the multitude of Romney/Ryan lies – well, let’s just say the cons weren’t quite to eager to quote them.
getalife
March 4th, 2013
10:20 pm
Yes, stay the course on deregulating the banks again.
It worked out great last time.
Only collapsed the global economy, lost millions of jobs, tanked your 401 k’s and blew out the deficit.
The party of stupid indeed.
Are you trying to lose the house too?
getalife
March 4th, 2013
10:26 pm
“Escort Says She Was Paid To Make Up Claims About Menendez” HP
bretbart again?
rw media is a joke.
bluecoat
March 4th, 2013
10:51 pm
Who wants the pugs to cave?Obama got some taxes he ask for,or got them renewed.He will go down in history with more accolades than Bush 1&2 with their 12 yrs.combined.By the end of his term Natl.gas.Lng being shipped,the economy should be hitting on all cylinders.Now if we could get some of this unemployment money working to pay more taxes.Obama with a little ingenuity,being as young as he is could possibly go for a third term.
bluecoat
March 4th, 2013
10:56 pm
Little B Do not bet he’s bluffing.He will do what Israel,and the powers ask.
Old Timer
March 5th, 2013
12:09 am
As long as the BIG BOYS & GIRLS have the money they will make campaign donations and DO WHAT EVER THE WANT–it is WASHINGTONS way of doing business. OBUMA loves it.
Jack ®
March 5th, 2013
5:46 am
Dodd’s a crook and Frank is an embarrassment. Frank is the leading lady in the housing industry crash.
Aesop's Fables and other Lib Economic Theories
March 5th, 2013
6:57 am
But according to the affidavit released on Monday, the woman now says she was paid to read from a prepared text and was videotaped without her consent.
So the libs have paid the hooker again, I see.
Aesop's Fables and other Lib Economic Theories
March 5th, 2013
7:54 am
CapitalClimate reports that record low temperatures were set in Florida on Wednesday: Naples hit 36 degrees, Tallahassee hit 18 degrees and pockets of Florida saw it get even colder with the Gainesville area dropping to 10.7 degrees in northern Florida and the Lake Okeechobee area in southern Florida dipping down to 15.3 degrees.
Global warming! They were right! Can I get a duh?
indigo
March 5th, 2013
8:30 am
Aesop – 7:54
How many times do you have to be told that climatologists predicted, years ago, that global warming would be punctuated with intense periods of cold in certain areas?
Or, when you’re told something you don’t want to hear, it’s just ignored?
indigo
March 5th, 2013
8:34 am
Aesop
For you, although this is probably a wast of time.
http://www.skepticalscience.com/global-warming-cold-weather.htm
Lil' Barry Bailout - OBAMAPHONE!!!
March 5th, 2013
8:50 am
Isn’t it convenient how the global warming believers gave themselves the get-out-of-jail-free card?
“We’re right, even though we will sometimes be very wrong”
indigo
March 5th, 2013
8:53 am
Barry
Real science is far beyond your fundamentalist homeschooling level.
Don’t even try to understand it.
Aesop's Fables and other Lib Economic Theories
March 5th, 2013
9:20 am
How many times do you have to be told that climatologists predicted, years ago, that global warming would be punctuated with intense periods of cold in certain areas?
Yes, and it would cause the seas to not rise, be less hurricanes, flat temperatures for the last decade, the sun to rise in the east, blah, blah, blah.
Go shake your chicken feet at someone that has no brain.