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Saturday, November 25, 2006
Law - "Supreme Court to Hear Arguments Next Week in States' Challenge to 'Preemption' of Regulation"
"Case Tests Federal Supremacy Over Banks: Supreme Court to Hear Arguments Next Week in States' Challenge to 'Preemption' of Regulation," is the headline to this story by Kirstin Downey today in the Washington Post. Some quotes:
The federal government and the banking industry will square off next week in the Supreme Court against all 50 states and the District of Columbia in a mortgage-lending case that could have broad implications for business regulation.The case, Watters v. Wachovia Bank, focuses on the lending industry. But the broader question it addresses is whether federal regulators can essentially tell state regulators to go away. It's a debate over what is called "preemption." How the court resolves the dispute could affect many other industries. * * *
Other businesses say the issue affects them, too. "The power of Congress (either directly or through administrative agencies) to preempt state and local law is vitally important to business and to the national economy," the U.S. Chamber of Commerce wrote in its brief. "Accordingly, the Chamber and its members have a substantial interest in ensuring that this Court properly resolves the issues raised in this case." * * *
The preemption issue has attracted the attention of many prominent jurists and legal scholars. At an American Enterprise Institute conference in April attended by former special prosecutor Kenneth W. Starr and appellate court judges Douglas H. Ginsburg and Stephen F. Williams, Epstein and other scholars proposed that other industries could also eek federal preemption from state and local laws.
Many states set their own rules on such issues as auto emissions and safety, workplace standards and product safety.
Michigan's side also has many supporters. Michelle Aronowitz, deputy solicitor general in the office of New York State Attorney General Eliot L. Spitzer, wrote the brief that was co-sponsored by the 49 other states, the District and Puerto Rico. It is rare for so many states to support a particular legal position, but they were eager to do so, said Dan Schweitzer, Supreme Court counsel of the National Association of Attorneys General.
"One of the roles of state AGs is protecting their consumers, and what the OCC has been trying to do is prevent state AGs from doing that with respect to a very important [group] -- state-chartered mortgage lenders that happen to be owned by banks," Schweitzer said.
Posted by Marcia Oddi on November 25, 2006 12:20 PM
Posted to General Law Related