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
MarkV
March 5th, 2013
9:23 am
indigo @ 8:53 am
Don’t you understand that global warming/climate change exists only in the imagination of the leftist kooks – such as the people at the World Bank?
http://climatechange.worldbank.org/content/climate-change-report-warns-dramatically-warmer-world-century
Dusty
March 5th, 2013
9:23 am
Well, good morning. I see everyone is in agreement about the climate, lies, etc. etc.
But I read last night’s posts and there was one from that old geez…er ..gent RC-apoi. I couldn’t believe it. After his homemade still blew up under his trailer and he said it was just a SINK HOLE, I thought he’d never get out of JAIL. I mean even a guv’ment inspector knows you don’t find a puddle of “moonshine” booze at the bottom of a sink hole.
Anyway, I’m glad ol’ Red is out of jail again. Just hope he lays off the booze. It makes him even crazier than his usual crazies, DTs et al.
Rafe Hollister preparing for an Obamanist America
March 5th, 2013
9:28 am
1407 days without a budget.
5 months and no one knows if anyone survived Benghazi.
No terrorist brought to justice for Benghazi.
Questions still exist about Fast and Furious.
Millions being sent to an unfriendly country presided over by a Jew hater.
Dennis Rodman making progress on foreign policy with N Korea.
33% of our debt accumulated under Obama.
Top 1% paying 37% of the taxes.
47% paying zero in income taxes.
The number of people actively engaged in the job market declining each month.
Millions unemployed or under employed and no sign of relief. 7.9% unemployment.
Morning in Obama’s America, and his sycophants have no shame.
Dusty
March 5th, 2013
9:39 am
Good morning, Rafe,
I have to laugh every time Dennis Rodman is mentioned. The last picture I remember about him in the news he was wearing a long white wedding dress. Don’t know how that turned out.
Is he really in North Korea? And for what?
Lil' Barry Bailout - OBAMAPHONE!!!
March 5th, 2013
9:44 am
Don’t cry, indigo, I’m sure that even if global warming is shown to be a complete fraud, you and the other corporation-bashing, profit-hating, private-property-fearing whack jobs will find a new vehicle to carry your un-American cause forward.
MarkV
March 5th, 2013
10:14 am
Dusty,
I can’t believe you have not seen Dennis Rodman on TV, gushing about his new best friend, Kim Jong Un. No wedding dress but plenty of rings in the nose and lip. Priceless!
indigo
March 5th, 2013
10:26 am
MarkV – 9:23 “don’t you understand that global warming/climate change exists only in the minds of the leftist kooks”
I do know that’s what those great intellects Barry and Aesop keep telling me.
In fact, thanks to Barry, I’ve learned I’m actually un-American.
Golly, Mark, we’re so fortunate that Kyle has such high class bloggers as Barry and Aesop here to show us the error of our ways.
Rafe Hollister preparing for an Obamanist America
March 5th, 2013
10:33 am
Morning Trusty Dusty
Never rhymin rusty!
Yep, Rodman was ova there, he is so important now, he was invited on one of the State approved media Sunday shows. Maybe the secret to make friends with Un is, instead of food for his people, we offer him an NBA team if he will abandon his nuclear dreams. Maybe we give him the whole NBA!
clem
March 5th, 2013
10:50 am
maybe even conservatives can understand this:
http://mashable.com/2013/03/02/wealth-inequality/
Aesop's Fables and other Lib Economic Theories
March 5th, 2013
10:54 am
indie – This may be hard to follow but just because the libs want to poke themselves in the eye and pay homily and penance to the sky gods doesn’t mean that I’m aboard with it.
Any idiot, well, most idiots would compare the recent henny penny skies falling episodic fit that obozo chose to perform in full view of the public and say to themselves, “gee, these libs sure do get worked up over nothing, rather easily, in fact.”
To believe anything you have to say would be like becoming a three year girl.
Not gonna happen.
Aesop's Fables and other Lib Economic Theories
March 5th, 2013
10:56 am
There you go clem, under obozo the rich get richer and the poor get poorer.
Nice find.
clem
March 5th, 2013
11:03 am
started under reagan
Rafe Hollister preparing for an Obamanist America
March 5th, 2013
11:03 am
The word “FREEDOM” is among the list of banned vanity license plate slogans for Washington D.C., according a government file obtained by a Freedom of Information Request filed by the transparency website GovernmentAttic.org.
http://washingtonexaminer.com/freedom-license-plate-banned-in-washington-d.c./article/2523271
I guess for the Dems Freedom is just another word! And a bad word at that!
Rafe Hollister preparing for an Obamanist America
March 5th, 2013
11:05 am
started with the Romans!
getalife
March 5th, 2013
11:06 am
Dow hits a record high under President Obama to add to his legacy.
Rafe Hollister preparing for an Obamanist America
March 5th, 2013
11:11 am
TAMPA (CBS TAMPA) – Spring Breakers flocking south to Florida’s typically warm and sunny beaches are bringing along a very unwelcome guest this year – Old Man Winter.
Temperatures averaging 10 to 20 degrees below normal have taken a southward dip into the southeastern portion of the U.S., with temperature highs sitting unseasonably low in the 50 and 60 degree range.
Global warming bringing us chilly temps in FL, we gotta do something soon!
Rafe Hollister preparing for an Obamanist America
March 5th, 2013
11:14 am
getalife
With tax hikes and rising gasoline prices sapping consumers’ pocketbooks and politicians preaching sequester gloom and doom, the IBD/TIPP Economic Optimism Index plunged 5.1 points in March to 42.2, the lowest since December 2011.
The federal economic policies confidence gauge fell 11% to 35.5, also a 15-month low. The six-month outlook index cratered 18% to 38.8, the worst since October 2011. The personal financial outlook reading lost 4.4% to 52.2, though that’s still above the neutral 50 level separating optimism and pessimism.
January personal income tumbled 3.6%, the worst monthly drop in 20 years, in the wake of fiscal cliff tax hikes on payrolls and high earners. Gasoline prices climbed day after day. Stock prices have wobbled as Italy’s inconclusive election revived concerns about the eurozone and global economy. Meanwhile, President Obama has been campaigning across the country, warning that automatic spending cuts will have a disastrous impact on government services and the economy. The sequestration just took effect this month.
Read More At IBD: Economic Optimism Plunges; 59% Say U.S. In Recession: IBD/TIPP Poll – Investors.com http://news.investors.com/economy/030513-646760-ibd-tipp-economic-optimism-index-dives-in-march.htm#ixzz2MgNacTRK
Follow us: @IBDinvestors on Twitter | InvestorsBusinessDaily on Facebook
Rafe Hollister preparing for an Obamanist America
March 5th, 2013
11:16 am
getalife
He has got a legacy alright, but it has nothing to do with the Dow. Legacy as the most divisive incompetent President ever to serve this great country.
Rafe Hollister preparing for an Obamanist America
March 5th, 2013
11:19 am
I forgot, Obama has a legacy as the worlds most successful gun salesman!
getalife
March 5th, 2013
11:31 am
“the most divisive incompetent President ever to serve this great country.”
w is long gone and can’t even show his face.
Our President will keep serving like President Clinton.
MarkV
March 5th, 2013
11:31 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.”
“Spring Breakers flocking south to Florida’s typically warm and sunny beaches are bringing along a very unwelcome guest this year – Old Man Winter.”
The level of ignorance, exhibited by the deniers who cite reports like the above as arguments against global/warming climate change is quite astounding. A very small temperature increase due to carbon dioxides as greenhouse gas has an enormous cumulative effect, such as evaporation of huge amounts of ocean water (leading to overall increases in local flooding or snow calamities), which increases the amount of greenhouse gases in the atmosphere, which is also a greenhouse gas, which then results in more warming, etc.. Any individual weather phenomenon, such as cold temperatures in Florida, is a completely different situation – a small increase in global temperature does not have any noticeable effect on the temperature of the cold air coming from the arctic, for example.
getalife
March 5th, 2013
11:37 am
Record Dow means record revenues to work on our deficit.
If our President was not half black, you cons would be cheering for him.
indigo
March 5th, 2013
11:40 am
MarkV – 11:31
Don’t bother trying to explain science to these fundamentalist Christians here.
Scripture is the only thing they will ever believe. Those who saw to their religious upbringing have made certain of that.
md
March 5th, 2013
11:40 am
“Record Dow means record revenues to work on our deficit.”
It’s all on paper money until it is taken out of the market, so revenue is not a given.
md
March 5th, 2013
11:41 am
“Don’t bother trying to explain science to these fundamentalist Christians here.”
Science -What we think we know as of today…….learn that and one would be wiser for it.
getalife
March 5th, 2013
11:43 am
Even the drudge report has a big smile today.
Our President is a capitalist that save capitalism.
getalife
March 5th, 2013
11:49 am
Taxes and cuts are done.
There has not been a budget passed in 16 years.
The government will be funded for another year.
Dow is at a record high but need to work on jobs but gop congress votes no on jobs,
So, all that is left is our President’s agenda.
They agree on guns, immigration and gay marriage.
Lets get it done.
Cheesy Grits is gone but not forgotten
March 5th, 2013
11:54 am
Science -What we think we know as of today…….learn that and one would be wiser for it.
Gibberish.
Science is not what we think we know.
Its what we KNOW.
Does it change. Sometimes yes. that is the beauty of it.
But guess what gravity isnt changing.
md
March 5th, 2013
12:01 pm
“Science is not what we think we know.
Its what we KNOW.
Does it change. Sometimes yes. that is the beauty of it. ”
Well Cheesy, if we know it it should never change…..right?
Once upon a time, science said the earth was flat.
Once upon a time one could only catch aids through sexual contact.
In the 70’s scientists said we were entering into a new ice age.
Of course those are just a few of many instances, shall I continue?
Just Saying..
March 5th, 2013
12:08 pm
DOW reaches all time high in President Obama’s second term.
Maybe Mitt got one thing right.
And Tib claims, despite wholesale conversion of retirement plans to 401(k)s, this performance will have no real meaning to Americans, in 3…2…1…
Tiberius - pulling the tail of the left AND right when needed
March 5th, 2013
12:09 pm
The stupid is strong this morning from the liberal side.
Once again, getalife, the Dow has almost nothing to do with a healthy or unhealthy economy. It has much more to do with profitable companies which are very prevalent due to cutting expenses while keeping revenues largely flat.
Global warming remains an inconsistent theory with questionable science and data behind it. Record cold remains record cold, no matter where it is generated. Placement of sensors near known urban hot spots skews data. And if we have more people on this planet than ever before (and we do), and haven’t enacted any significant policies to curb global warming (which we haven’t), why have global temperature rises leveled off rather than accelerated?
There will be no more artificial and temporary stimulating of this economy for the rest of President Incompetent’s term of office unless it is paid for in associated budget cuts. He’s not going to get new taxes unless they are offset with budget cuts. And it is unlikely that he will get the House he wants in 2015 due to gerrymandering. It will likely stay in GOP hands through the next census unless the GOP does something galactically stupid (which is always a possibility but cannot be predicted).
His first 2 years remains a fiscal disaster, but his last 6 will be known for unbelievable levels of gridlock through lack of compromise and leadership – largely due to his rather obvious shortcomings in both areas.
“I survived the Obama Disaster” will become the best selling T-shirt and bumper sticker beginning in 2017.
Tiberius - pulling the tail of the left AND right when needed
March 5th, 2013
12:14 pm
“And Tib claims, despite wholesale conversion of retirement plans to 401(k)s, this performance will have no real meaning to Americans, in 3…2…1…”
Just Saying, you may not make up what I believe when you don’t have something to contribute to the discussion.
That is the mark of a liar.
I have NEVER claimed that stock market “performance will have no real meaning to Americans”, as you suggest, but rather appropriately make the claim I have made above – that it has nothing to do with the health of the economy.
I would appreciate it if you would stop “pulling an Obama” and concentrate on YOUR beliefs, and not try to tell others what mine are.
That remains my job, not yours.
md
March 5th, 2013
12:19 pm
“despite wholesale conversion of retirement plans to 401(k)s, this performance will have no real meaning to Americans, in 3…2…1…”
And the possibility does exist that it won’t.
These are paper gains and are never realized unless one takes their profit out at that given point in time.
Cheesy Grits is gone but not forgotten
March 5th, 2013
12:20 pm
Well Cheesy, if we know it it should never change…..right?
Once upon a time, science said the earth was flat.
Once upon a time one could only catch aids through sexual contact.
In the 70’s scientists said we were entering into a new ice age.
Of course those are just a few of many instances, shall I continue?
Yes please do. Only proves my point.
Science will correct itself unlike other things like Religous dogma.
When do you think they will figure out gravity was wrong ?
There are some things we KNOW
Simply pointing out that Science is sometimes off the mark means nothing.
Science is about the process and getting to the truth.
Which it usually does quite nicely.
Cheesy Grits is gone but not forgotten
March 5th, 2013
12:22 pm
And the possibility does exist that it won’t.
Tell that to my Dad.
He has about 200k in his 401k.
That is his nest egg.
Took a beating under Bush but stuck it out and has recovered his money under Obama.
Proceed.
Just Saying..
March 5th, 2013
12:22 pm
“That remains my job…”
Tib: You’d benefit from checking your job performance evaluations, on this site.
Tiberius: He Who Must Not Be Challenged…
Cheesy Grits is gone but not forgotten
March 5th, 2013
12:23 pm
That is the mark of a liar.
Ive found a mark of a liar is to call everyone else one.
Sort of trying to beat them to the punch.
Tiberius - pulling the tail of the left AND right when needed
March 5th, 2013
12:25 pm
My performance numbers are just fine on this site, Just Saying.
If I were you (and think God I’m not), I’d worry more about your positions rather than trying to state mine, OK?
getalife
March 5th, 2013
12:26 pm
The Dow is not bad for a marxist, kenyan, socialist commie pinko huh cons.
At what point do you cons admit your are liars and our President is competent.
Do it now cons.
md
March 5th, 2013
12:30 pm
“Tell that to my Dad.
He has about 200k in his 401k. ”
Are you really that dense and clueless?
Unless he pulls it out right this minute, all he has is a paper balance that equates to 200K……the market drops tomorrow and he has whatever the balance is tomorrow.
The only way he has 200k is if he cashes out when it is 200K. Get a clue there fella, learn the difference between paper balances and actual balances.
Just Saying..
March 5th, 2013
12:31 pm
“These are paper gains and are never realized unless one takes their profit out at that given point in time.”
By Jove, I believe he doth understand. Pray tell, Great Oracle, the wave of the largest generation in American begins to retire when?
And the answer is under President Obama, for those who didn’t have heart failure during Bush’s second term.
Tiberius - pulling the tail of the left AND right when needed
March 5th, 2013
12:35 pm
“I’ve found a mark of a liar is to call everyone else one.”
And as soon as you can point out to one single, solitary lie I have written, Cheesy, you might actually be right for the first time on this blog.
I’m looking forward to that day.
Cheesy Grits is gone but not forgotten
March 5th, 2013
12:36 pm
Unless he pulls it out right this minute, all he has is a paper balance that equates to 200K……the market drops tomorrow and he has whatever the balance is tomorrow.
True.
But id rather have a higher paper balance and trending that way than the oppposite.
Let the good times roll !!!
md
March 5th, 2013
12:37 pm
“By Jove, I believe he doth understand. Pray tell, Great Oracle, the wave of the largest generation in American begins to retire when?”
And you think one would take it all out at one time? Do you understand the tax hit one would take doing that? And do you really think those retiring now would still have their portfolios in risky stocks?
God I hope they aren’t that clueless…………..
Cheesy Grits is gone but not forgotten
March 5th, 2013
12:37 pm
And as soon as you can point out to one single, solitary lie I have written, Cheesy, you might actually be right for the first time on this blog.
I dont really read your comments.
Yawn
Cheesy Grits is gone but not forgotten
March 5th, 2013
12:41 pm
And you think one would take it all out at one time? Do you understand the tax hit one would take doing that?
About 10 percent
Alot of them are rolling it over to a Roth IRA.
Its more liquid
Just Saying..
March 5th, 2013
12:41 pm
md, do you have any net worth (Not a trick question)?
Does that net worth have any influence on your ability to get a mortgage, loan, or any other financial decision?
Was that net worth larger when the DOW was at 6,000, and less at DOW 14,000?
You don’t have to be truthful in this public forum.
Just to yourself…
Tiberius - pulling the tail of the left AND right when needed
March 5th, 2013
12:43 pm
“I dont really read your comments.”
And admitting ignorance simply proves you don’t know enough about me to make an accusation as you did, Cheesy.
Not that I didn’t already know your level of ignorance based on your posts, but why are you so quick to judge others when you admit you know nothing about them? What happened to the famous tolerance of liberals?
Just Saying..
March 5th, 2013
12:43 pm
Tib: “I’m looking forward to that day.”
Not ment to be a truthful statement.
Aesop's Fables and other Lib Economic Theories
March 5th, 2013
12:45 pm
Dow hits a record high under President Obama to add to his legacy.
uh huh
Just a quick, cranky reminder: Despite what you may have read, the Dow Jones Industrial Average did not hit a new high today in any meaningful sense.
After adjusting for inflation, the Dow was higher in 2000 than it is today. It was also higher in 2007. It would need to rise another 10 percent or so to hit an all time high in real (i.e. inflation-adjusted) terms. – NPR
So Bushie still rules, eh? Must be some accomplishment, the way the libs are bubbling with joy this morning. Maybe some day, they’ll greatness like W did.