Jeffrey P. Naimon quoted in American Banker article, “Kavanaugh’s skepticism of regulatory power seen as boon for banks”
American BankerJeffrey P. Naimon
Jeffrey P. Naimon was quoted on July 11, 2018 in an American Banker article, “Kavanaugh’s skepticism of regulatory power seen as boon for banks,” which discussed Brett Kavanaugh, President Trump’s nominee for Supreme Court justice, and Kavanaugh’s views on issues that could positively impact on the banking industry. The article stated, “Others note his more general discomfort with granting deference to regulatory agencies on legal questions where the meaning of a law is vague. The court established such deference known as the "Chevron Doctrine" in a 1984 court case. The Chevron doctrine is a critical issue for banks. Kavanaugh would join the first Supreme Court justice appointed by President Trump, Neil Gorsuch, in questioning judicial deference for agencies. But overturning Chevron may be a double-edged sword for banks since both the CFPB and prudential regulators make judgments that in many ways protect banks' business models, lawyers said.”
Naimon added, “Creditors want to know with specificity what they can and cannot do, and Chevron protects the specificity. Kavanaugh and Gorsuch are both skeptics of Chevron and of whether the standard in Chevron is right in determining whether agency actions are within their authority.”
Naimon also noted Kavanaugh’s views regarding disparate impact. Naimon noted, “I don't think Kavanaugh is going to find disparate impact in the words of the Equal Credit Opportunity Act. That's a positive for the industry because it means there is less liability for banks and financial firms, and more access to credit for consumers.”
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