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
Lil' Barry Bailout - OBAMAPHONE!!!
March 5th, 2013
12:48 pm
indigo, I have yet to comment on the validity of global warming theory on this or any blog, so anything you think you know is purely conjecture. Not that a little ignorance ever stopped you…
Tiberius - pulling the tail of the left AND right when needed
March 5th, 2013
12:49 pm
Not that I’m shocked, Just Saying, but it would show just a bit of class for you to apologize for incorrectly stating my position on the stock market.
Again, I’m not expecting such a display of class from you, but it would be refreshing for you to show some for a change.
Just Saying..
March 5th, 2013
12:54 pm
“And do you really think those retiring now would still have their portfolios in risky stocks?”
Uh, Mr. Broker, take my DOW 6,000 index fund and put it into bonds.
OR, Mr. Broker, take my DOW 14,000 index fund and put it into bonds.
md, when you’re able to analyze that, you’ll have official matchbook Registered Rep status.
Love to stay longer, but the Blue Jays are at the Orioles in Sarasota.
No, enjoy YOUR day…
Cheesy Grits is gone but not forgotten
March 5th, 2013
12:59 pm
Love to stay longer, but the Blue Jays are at the Orioles in Sarasota.
No, enjoy YOUR day…
Be down there in a couple weeks myself.
Cant wait
md
March 5th, 2013
1:00 pm
“Was that net worth larger when the DOW was at 6,000, and less at DOW 14,000?”
What you seem to be missing is that the 14 is not a given. It is a “now” and can very well go right back to 6, especially by the time I retire down the road.
To answer your question, yes my paper gains are back to where they were before, but it’s ALL on paper………….
Aesop's Fables and other Lib Economic Theories
March 5th, 2013
1:02 pm
Be down there in a couple weeks myself.
Be sure to pack some sweaters, mittens and long johns, global warming has attacked the tropics, duh.
md
March 5th, 2013
1:02 pm
“About 10 percent
Alot of them are rolling it over to a Roth IRA.
Its more liquid”
10%?
The rate is based on tax bracket……and if one took 220k all at once as income one would NOT be in the 10% bracket.
Same for roth conversion……to convert one has to pay the tax up front…..ALL the tax at one time.
md
March 5th, 2013
1:07 pm
“Uh, Mr. Broker, take my DOW 6,000 index fund and put it into bonds.
OR, Mr. Broker, take my DOW 14,000 index fund and put it into bonds.”
If they were planning on retiring now, they were stupid to even be in stocks when the dow went down to 6000…..that is what you seem to be missing.
getalife
March 5th, 2013
1:12 pm
It was the rw media daily caller that set up hookergate.
rw media is a joke.
getalife
March 5th, 2013
1:13 pm
The speaker was right.
Our President is going for the house to annihilate the gop.
Speaker Pelosi is ready to lead.
getalife
March 5th, 2013
1:15 pm
md,
The market closed at 6000 but it would have gone lower.
The market hit a record high thanks to President Obama.
Tiberius - pulling the tail of the left AND right when needed
March 5th, 2013
1:19 pm
“The market hit a record high thanks to President Obama.”
Not intended to be a factual statement, except that when companies retrenched due to inconsistent and unworkable economic polices proposed by President Incompetent, they saved their money instead of spending it.
In that regard only can this president’s actions be considered a catalyst for the Dow reaching it’s current level.
md
March 5th, 2013
1:20 pm
“The market hit a record high thanks to President Obama.”
Actually has more to do with the 20 million put out on the street and Ole Ben running the printing presses non-stop. But you are quite welcome to continue your fantasy……..
Tiberius - pulling the tail of the left AND right when needed
March 5th, 2013
1:20 pm
“Speaker Pelosi is ready to lead.”
Not in any lifetime.
getalife
March 5th, 2013
1:21 pm
Facts are facts.
The buck stops with the President so he gets the credit to add to his legacy.
This President rocks and you know it.
md
March 5th, 2013
1:26 pm
“The buck stops with the President….”
The buck can never stop with one that never takes any responsibility. The entire admin says someone else did this or that.
Watched Janet last night say “I had nothing to do with releasing those illegals”…..and that is her show.
They sure do know how to point fingers though……..
Aesop's Fables and other Lib Economic Theories
March 5th, 2013
1:32 pm
Let’s listen in on the liberals from the 3rd Century -
mayaneesy – Sir, we’ve sacrificed 700 people this morning but the Sun God is still hot and angry with us.
mayanV – Well, go get another 700.
Aesop’s – Maybe the sun is supposed to be hot? The vegetation seems to like it.
mayanV – Heretic! Savage!
mayaneesy – Yeah, you neanderthal, don’t you know that 99.9% of the Heart Removers Association says sacrifice is the only thing keeping us from oblivion? That and their 10% hike in this years budget, if mayanobozo ever get’s around to drafting one.
just mayin – Yeah, you’re really stoopid.
Aesop’s – Whateva.
bluecoat
March 5th, 2013
1:32 pm
I think it should be Prince Obama,messiah sounds more conservative like.
Finn McCool (The System isn't Broken; It's Fixed)
March 5th, 2013
1:36 pm
The Swiss people aren’t blinded like our people:
Yesterday, voters in Switzerland overwhelmingly approved new measures to clamp down on executive pay. Under the approved referendum — which means that the new provisions will be added to the Swiss constitution — shareholders will have the ability to veto executive pay packages, so-called “golden parachutes” will be outlawed, and executives who defy the rules could see jail time.
Aesop's Fables and other Lib Economic Theories
March 5th, 2013
1:38 pm
Yes, the vast economic power that is Switzerland.
Aesop's Fables and other Lib Economic Theories
March 5th, 2013
1:39 pm
What would Switzerland be without American liberals hiding their moneyfrom the IRS within their banking system?
Finn McCool (The System isn't Broken; It's Fixed)
March 5th, 2013
1:39 pm
Not intended to be a factual statement
Not surprised this person doesn’t understand the definition of “fact.”
Finn McCool (The System isn't Broken; It's Fixed)
March 5th, 2013
1:42 pm
In the Dodd-Frank Wall Street reform law, shareholders of U.S. corporations were also given new powers meant to rein in executive pay. However, Dodd-Frank only gives shareholders a non-binding vote, meaning that the corporation is able to essentially ignore it.
Tiberius - pulling the tail of the left AND right when needed
March 5th, 2013
1:46 pm
“The Swiss people aren’t blinded like our people:”
Point in fact, the Swiss don’t live under a Constitution such as ours, which does not allow for such a law to be passed.
But don’t let facts get in the way of more misinformation, Finn.
Aesop's Fables and other Lib Economic Theories
March 5th, 2013
1:46 pm
U.S. Vice President Joe Biden said there remains “time and space” for diplomacy aimed at averting military action to prevent Iran from becoming a nuclear weapons power.
blah, blah, blah, yeah, plus the suckwester will be the End of Western Civilization.
You people in Israel should be very, very worried.
Either that or punk Iran by yourself. Two days and that will be that. Let obozo cry in his turbin.
JDW
March 5th, 2013
1:47 pm
@Tiberius…”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.”
You are one seriously impaired Dude that apparently can’t remember all the way back in time to 8:28pm yesterday on this very blog…only question is what other…ahemmmmmm….factually challenged statements will you make today.
Tiberius - pulling the tail of the left AND right when needed
March 5th, 2013
1:48 pm
“The buck stops with the President so he gets the credit to add to his legacy.”
Creating false credit doesn’t replace earning real credit, getalife.
Of course, creating a phony picture of what a President should perform like is the way you libs seem to operate, so maybe it’s just par for the course with you on this current incarnation.
bluecoat
March 5th, 2013
1:53 pm
Real credit you know like mission accomplished.
Finn McCool (The System isn't Broken; It's Fixed)
March 5th, 2013
2:00 pm
Yeah, what we need is more leadership from the Con party:
Though ACORN has been shut down for some time, House Republicans are still trying to defund it. A provision in a short-term budget bill introduced by the House Appropriations Committee would cut funding to the group, which advocated for low-income families, but was stripped of all federal funding in 2009 and shut down in 2010.
what idiots.
bluecoat
March 5th, 2013
2:04 pm
what would switzerland without the liberals money? ROMNEYLAND
Tiberius - pulling the tail of the left AND right when needed
March 5th, 2013
2:05 pm
“You are one seriously impaired Dude that apparently can’t remember all the way back in time to 8:28pm yesterday on this very blog”
Seriously impaired, JDW?
Look in the mirror, sonny.
Given the FACT that I made NO COMMENT AT ALL at 8:28 pm yesterday, you have once again failed in your never-ending quest to prove me wrong.
Tiberius - pulling the tail of the left AND right when needed
March 5th, 2013
2:10 pm
Now it’s off to stir up the PRIVATE sector economy for a few minutes while JDW takes some time to figure out how idiotic he just looked.
Later!
Aesop's Fables and other Lib Economic Theories
March 5th, 2013
2:13 pm
Remember the “Domino Theory?”
On Saturday afternoon, Yale hosted a “sensitivity training” in which students were asked to consider topics such as bestiality, incest, and accepting money for sex.
“People do engage in some of these activities that we believe only for example perverts engage in,” she said. “What the goal is is to increase compassion for people who may engage in activities that are not what you would personally consider normal.”
What did we tell you?
Rafe Hollister preparing for an Obamanist America
March 5th, 2013
2:14 pm
It was also higher in 2007.
So, higher in 2000 and 2007 in real dollars, but Finn/Cheesy said his father was getting killed in the market under Bush. How was that Finn?
Well, maybe in 2008, which was a really bad year, but it is deceptive to always imply that Bush’s economy was a disaster. Yes, he had a recession that started in 2008 and lasted into 2009. He had a relatively good economy from 2001 to 2007. Six good years out of eight makes one an economic genius, compared to Obama 0-5 performance and Carter’s 0-4.
We haven’t had one good year under Obama. When is his first good economic year going to start, just wondering?
Cheesy Grits is gone but not forgotten
March 5th, 2013
2:21 pm
but Finn/Cheesy said his father was getting killed in the market under Bush
He did. Did you see the disaster he left when he left ofice.
That wasnt a coincidence.
It was the effect of his policies.
Cut taxes during war time ( Unprecedented in US History ) and deregulated everything so his banking and enron buddies could go nuts.
Worst President Ever.
And im not Finn
Aesop's Fables and other Lib Economic Theories
March 5th, 2013
2:21 pm
The best indication that the Fed’s bond-buying purchases are pushing stocks up artificially is that investors run for cover whenever there is a hint that the Fed might change course, as happened recently. On Monday, billionaire superinvestor Berkshire Hathaway CEO Warren Buffett told CNBC that markets are on a “hair trigger” waiting for signs of change from the Fed. The market is “hooked on the drug” of easy money, Dallas Fed President Richard Fisher told Reuters.
You know what I mean?
Cheesy Grits is gone but not forgotten
March 5th, 2013
2:22 pm
Of course, creating a phony picture of what a President should perform like is the way you libs seem to operate,
I can see Bush landing on the Aircraft Carrier now.
Cheesy Grits is gone but not forgotten
March 5th, 2013
2:24 pm
Let’s listen in on the liberals from the 3rd Century –
The founding fathers were all liberals.
Washington, Jefferson, Franklin, Thomas Paine,
Liberals all.
Rafe Hollister preparing for an Obamanist America
March 5th, 2013
2:31 pm
MarkV
Yes, save the poutrage, I know that a few cool days in FL in Mar doesn’t disprove GW. Just like a warm decades out of millions of decades doesn’t prove GW either.
I just love to poke fun at anyone who thinks that cold weather is a symptom of GW. The advocates of GW are smart, they claim both sides, if it is colder that is a symptom of GW, if it gets real hot, well we warned you!!
Something relatively complex like the human body, readily available for examination, analysis, and research and studied since time began continues to mystify scientists, yet extremely complex climate systems are so easily understood, some experts claim it is settled science, that there is man caused GW.
Some simple questions, and we could go on for days, that seem simple but remain unanswered.
Are antioxidants good for you? Why is the flu vaccine so impotent in the elderly? Should women take calcium? What causes Alzheimers? Why is aspirin so effective for some many maladies?Inquiring minds want to know; yet GW is settled, right.
JDW
March 5th, 2013
2:37 pm
@Tiberius…”Given the FACT that I made NO COMMENT AT ALL at 8:28 pm yesterday, you have once again failed in your never-ending quest to prove me wrong.”
:ROLL: :ROLL: :ROLL: :ROLL: :ROLL: :ROLL: :ROLL: :ROLL: :ROLL: :ROLL: :ROLL: :ROLL:
You are just like a five year old with your mouth full of cookie going… Cookie? What Cookie, I don’t have a cookie…all the while chewing and swallowing.
JDW
March 5th, 2013
2:37 pm
Hillbilly D
March 5th, 2013
2:39 pm
Looks like Kyle must’ve fried that rooster.
Rafe's sock puppet
March 5th, 2013
2:42 pm
Cheesy
So, your Dad did well in the Stock Mkt for 6 years. Did he think it was going to continue forever? When one gets in, one expects downturns, the downturn was severe in 2008/09, but the market has bounced back. I stayed in and made my money back.
Stocks go up and down and have since they created the stock market. Tell your father that the Market is not going to stay in the 14000 range forever, even tho you think the Messiah has brought forth this great economic healing, there will be more corrections, and past performance is not an indicator of future returns. (No charge for passing on the stock brokers advice)
Cheesy Grits is gone but not forgotten
March 5th, 2013
2:46 pm
I just love to poke fun at anyone who thinks that cold weather is a symptom of GW.
You really dont get it.
Are antioxidants good for you? Why is the flu vaccine so impotent in the elderly? Should women take calcium? What causes Alzheimers? Why is aspirin so effective for some many maladies?Inquiring minds want to know; yet GW is settled, right.
There are logical answers to all those questions.
My bet is Science answers them someday.
They have the greatest track record in human history of improving mankind and finding the truth.
Kyle Wingfield
March 5th, 2013
2:46 pm
Hillbilly: I got hungry
That said, there is a new post upstairs.
Cheesy Grits is gone but not forgotten
March 5th, 2013
2:47 pm
So, your Dad did well in the Stock Mkt for 6 years. Did he think it was going to continue forever?
Yes until the full effect of W’s incompentence come to the front.
Then it was a disaster.
bluecoat
March 5th, 2013
2:51 pm
May have mistaken the rooster for Big Bird.
Finn McCool (The System isn't Broken; It's Fixed)
March 5th, 2013
2:55 pm
Christian Megachurch in Foreclosure After Preacher Paid Himself Millions in Donated Cash
suckers!!!!