On July 5, 2024, S&P Global Market Intelligence quoted Adrienne Gurley on the impact that recent US Supreme Court rulings will have on banks and others in the financial sector. According to the article, a handful of the recent SCOTUS decisions will seemingly enable banks to push back against regulators.
S&P Global Market Intelligence reports that at-large regulators may have fewer means of controlling banks using their own internal processes, because of the decision in George Jarkesy Jr. et al. v. SEC in which the organization’s administrative law judges lost power.
Gurley explained that “the agencies will also have to consider what's the risk, what's the benefit of bringing a case.” She added that the three federal bank regulators often use administrative law judges for penalties, and bringing these to court is "going to be huge for them,” noting a case that was stayed in the US Court of Appeals for the Fifth Circuit pending the recent SCOTUS decision.
"The rules are a bit different, federal rules apply, and so even the attorneys for those agencies aren't going to be as familiar with bringing these matters in before the federal courts,” Gurley said. “It's not exactly like an apples-to-apples comparison.”
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