When a new Securities and Exchange Commission leader is finally installed, she or he will be facing quite a bit of the Dodd-Frank financial reform law to put into effect. But a growing number of states are fighting at least part of the legislation.
Texas is the latest state joining a challenge to financial reform, saying it puts banks at risk and denies the state due process. Texas and 10 other states challenge Title II of Dodd-Frank, which gives the U.S. Treasury Secretary and the Federal Deposit Insurance Corporation (FDIC) authority to simply take over and liquidate large financial institutions. Texas also claims that the law makes it risky for the state to put taxpayer funds into financial institutions vulnerable to federal intervention.
Perhaps they can get on their smartphone and move that money to somewhere safer and with better returns, like that rip-roaring stock market rodeo we’ve been hearing so much about. Maybe not.