Federal Judge Unpersuaded By 'But, Socialism!' Argument

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The constitution does not protect small Texan banks from hypothetical but non-existent damages that might be one day be perpetrated by a federal agency that has done precisely nothing yet.

A federal judge tossed out a lawsuit that challenged pieces of the 2010 Dodd-Frank financial overhaul, saying the plaintiffs didn't show the law had an impact on them.

The complaint, filed last year by a small Texas bank and two conservative advocacy groups, was later joined by 11 states.

It challenged the constitutionality of the Consumer Financial Protection Bureau, the government's ability to wind down large financial firms and the Financial Stability Oversight Council, a group of regulators formed to oversee the financial system….

The plaintiffs "have not faced any adverse rulings nor has agency action been directed at them," she wrote.

To demonstrate standing, she wrote, plaintiffs must demonstrate they face an actual injury rather than a hypothetical one. The lawsuit was filed by the State National Bank of Big Spring, Texas, the Competitive Enterprise Institute and the seniors group 60 Plus Association.

Judge Dismisses Dodd-Frank Challenge [WSJ]

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