Federal judge dismisses Dodd-Frank challenge

Aug. 2, 2013 at 4:22 PM
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WASHINGTON, Aug. 2 (UPI) -- A federal judge in Washington dismissed a challenge to the creation of the Consumer Financial Protection Bureau on grounds the new agency was too powerful.

Judge Ellen Segal Huvelle said the plaintiffs "have not faced any adverse rulings." They also did not "face harm that is 'certainly impending,'" as the plaintiffs claimed, the judge said.

The case was brought by 11 states, two free-market advocacy groups and a Texas bank.

The plaintiffs also claimed naming Richard Cordray as the director of the financial watchdog agency was unconstitutional, given his recess appointment, the Los Angeles Times reported Friday.

Texas, Ohio, Michigan and Georgia were among the 11 states that challenged the creation of the bureau that was a centerpiece to the Dodd-Frank financial overhaul bill that was signed into law in July 2010.

The State National Bank of Big Spring was a party to the suit, claiming that disclosing fees for money sent to foreign countries -- called remittances -- had harmed their business. The bank also said new mortgage rules were harming business, the Times said.

Sam Kazman, a general attorney for the Competitive Enterprise Institute, said an appeal would be filed.

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