ON-Lion Letter
A federal district-court judge in August dismissed a lawsuit brought by the Competitive Enterprise Institute (CEI) in Washington, D.C., 11 state attorneys general, and the State National Bank of Big Spring in Texas challenging the constitutionality of several sections of the Dodd-Frank financial reform act.  The case will now be appealed.

"The district court's opinion is deeply flawed," C. Boyden Gray, lead counsel for the plaintiffs, said.  "State National Bank of Big Spring is a community bank that has served its community for generations, and it is disturbing that the opinion -- and the government -- ignored the very real harm Dodd-Frank has inflicted on it and the customers who rely on the bank to provide loans for everything from their home to their small business.

"Specifically," Gray continued, "Dodd-Frank's complex new regulatory regime has forced State National Bank, like many other banks, to expend thousands of dollars simply to ensure that they are in compliance with the [Consumer Financial Protection Bureau's] new policies.  Furthermore, Dodd-Frank caused the Bank to substantially change several of the services that it traditionally provided customers.  Contrary to the government's assertions, and the court's opinion, these costs are not self-inflicted.

According to CEI general counsel Sam Kazman, "Despite the fact that the court was ruling on the government's motion to dismiss, it repeatedly engaged in factual determinations rather than accepting the plaintiffs' allegations as correct.  The end result is that while Dodd-Frank continues to impose economic hardship nationwide, the test of its constitutional validity will be delayed.  Hopefully, it won't be delayed for too long."

The Lynde and Harry Bradley Foundation in Milwaukee substantially supports CEI.
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