WASHINGTON — Oklahoma Attorney General Scott Pruitt said Friday that he has joined a federal lawsuit challenging the constitutionality of a financial regulatory bill.
Pruitt told reporters on a conference call that a section of the 2010 financial reform bill known as Dodd-Frank gives unconstitutional authority to the secretary of Treasury to liquidate financial firms on short notice as long as the FDIC and the Federal Reserve don't object.
Pruitt and Republican attorneys general from Michigan and South Carolina said they were joining a lawsuit filed here by a community bank in Texas and two conservative groups. That lawsuit challenges several sections of the bill, while Pruitt said Oklahoma would join the action only on the part concerning the Orderly Liquidation Authority.
The attorneys general said the authority can put state investments at risk since, in shutting down a financial firm, the FDIC could decide which creditors would get their money.