U.S. District Judge Ellen Segal Huvelle dismissed a Texas community bank's case against the 2010 Dodd-Frank Act, stating that the financial institution, as well as the 11 states and two conservative groups backing the case have no legal ability to challenge the reform law.
"At issue was a case filed last year by the State National Bank of Big Spring and two advocacy groups that challenged the constitutionality of the Dodd-Frank Act with regard to "unbounded" powers given to the Consumer Financial Protection Bureau, the Financial Stability Oversight Council and other regulators," writes American Banker's Rachel Witkowski.
"This is an unusual case, as plaintiffs have not faced any adverse rulings nor has agency action been directed at them," Huvelle said in the final order. "As a result, plaintiffs' standing is more difficult to parse here than in the typical case." The judge went on to explain that the bank and others could not prove financial injury resulting from Dodd-Frank.
"The bank's claims remain abstract until there is some regulation that actually causes harm or will plausibly harm in the near future," Huvelle's ruling said.
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