Consumer Financial Services practice Leader Scott M. Pearson was quoted in American Banker about the end of “Chevron deference,” a doctrine that came from a 1984 U.S. Supreme Court case that gave federal agencies some freedom to interpret congressional statutes. Pearson said ending Chevron deference would make it easier for financial institutions to challenge regulatory interpretations of statutes that expand their scope or otherwise change what Congress intended.”
“The whole idea of deferring to regulators means deferring to the executive and weakening the separation of powers,” Pearson said. “That's why Chevron deference is going to be really important with the current group of regulators, because they are trying to push the envelope in every way they can.”
American Banker subscribers can read the article here.