ANALYSIS: Bank Regulators Lose Shield if Chevron Falls Next Term

The Supreme Court, following a frenzied term, will return to work from its summer recess poised to abandon its Chevron deference standard.

If the standard is discarded—or even diminished—federal bank regulators, specifically the Office of the Comptroller of the Currency and the Board of Governors for the Federal Reserve, will be left weakened and exposed. We can, in turn, expect more litigation challenging the regulatory and enforcement activities of the OCC and FRB—and, possibly, those of the Federal Deposit Insurance Corporation as well.

Forty Years of Deference

In Chevron U.S.A. Inc. v. Natural Res. Def. Council, Inc., the Supreme ...