Financial Services Committee Hearing: "Examining Constitutional Deficiencies and Legal Uncertainties in the Dodd-Frank Act"

The Financial Services Committee held a hearing concerning potential legal uncertainties in the Dodd-Frank Act. Congressman Patrick McHenry (R-NC), Chairman of the U.S. House Subcommittee on Oversight and Investigations, opened the hearing by expounding his view that the Dodd-Frank Act did not end "Too Big to Fail" and that Title I ("Financial Stability") and Title II ("Orderly Liquidation of Authority") raise several constitutional and legal uncertainties. Following that statement, a panel of constitutional scholars testified at the subcommittee hearing, two of whom expressed constitutional concerns about Dodd-Frank:

• The Honorable C. Boyden Gray testified that Dodd-Frank has entrenched "Too Big to Fail" and violates the separation of powers by giving effective open-ended power to regulators;
• Professor Thomas Merrill testified on the constitutional issues raised by the powers bestowed upon the Orderly Liquidation Authority in Title II of Dodd-Frank; and
• Mr. Timothy McTaggart testified on the possible constitutional issues raised by Dodd-Frank, but stated that the bill did not violate the separation of powers or due process of law.

See: Hearing Memorandum; Webcast of Hearing.