Industry groups are pursuing legal action against the Securities and Exchange Commission’s new corporate whistle-blower program as well as challenging a provision surrounding the extraction of oil and natural gas from foreign countries.
Wall Street also plans on putting heat on the Commodity Futures Trading Commission for its plan to curb speculative trading, according to the New York Times.
“I would hope the agencies are taking to heart the potential consequences for Dodd-Frank rules,” Eugene Scalia, a lawyer who won a case in the federal appeals court in July that struck down SEC rules that would have made it easier for shareholders to nominate company directors, said, the New York Times reports.
The ruling in the SEC case, "is just the latest in a series of SEC reprimands and confirms the need for congressional action," Sen. Richard Shelby (R-Ala.), the ranking member of the Senate Banking Committee, said.
Banks and corporations are shifting away from the legislative process, however, and are using litigators and influential trade groups like the Chamber of Commerce rather than challenging the rules directly.
“It is usually not in the interest of a single business to mount a claim,” Brian Cartwright, the SEC’s former general counsel who now works at the law firm Latham & Watkins, said, according to the NYTImes.com. “You need some cut-out man or organization that speaks for broad groups.”
Wall Street has found it is easier to gradually chip away at Dodd-Frank rather than mounting a broader challenge to the massive bill itself.
Lawyers claim a single lawsuit challenging the constitutionality of Dodd-Frank could take years and millions of dollars with a small chance of succeeding.