Two of the three state attorney generals in the lawsuit challenging Dodd-Frank discuss their objections to the law's Title II, which, as they put it, "gives the Treasury secretary and the Federal Deposit Insurance Corp. unprecedented authority to ‘liquidate’ financial companies," in a Wall Street Journal op-ed.
Oklahoma AG Scott Pruitt and South Carolina AG Alan Wilson are concerned about investor and creditor rights in liquidations under Title II because "Dodd-Frank's 'orderly liquidation' authority violates the Constitution's separation of powers, the Fifth Amendment's guarantee of due process, and the guarantee of 'uniform' bankruptcy laws,” they write.
Their pragmatic reason for this concern is that their state pension plans "have invested in the debt of financial companies that can be liquidated under Dodd-Frank."
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