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U.S. Consumer Bureau Violates Constitution, Lawsuit to Claim

A small bank in Texas plans to file a lawsuit in federal court today claiming that the 2010 Dodd-Frank Act, which overhauled financial regulation, is unconstitutional, C. Boyden Gray, a lawyer for the bank, said in a conference call.

The lawsuit, aimed in particular at the Consumer Financial Protection Bureau, alleges that the law violates the U.S. Constitution because Congress does not appropriate its budget, the president has limited ability to remove its director and the courts face restrictions in reviewing its actions.