The Evolving Jurisprudence of US Bank Supervision

Evolving US jurisprudence could reshape the foundations of bank supervision, according to Kathryn Judge, the Harvey J. Goldschmid Professor of Law at Columbia Law School. Judge makes this case in an article for a symposium from the Yale Journal on Regulation and the American Bar Association on Private Finance, Public Power: A History of Bank Supervision in America, a new book by Peter Conti-Brown and Sean Vanatta.

At issue is the Supreme Court's interpretation of Article II of the US Constitution, which governs presidential powers. Judge notes that six justices now appear to believe "the President may remove without cause executive officers" even when Congress provides otherwise, thereby narrowing Congress's capacity to design institutions and accountability mechanisms. This shift enhances presidential and judicial authority but threatens policy goals that depend on agency independence, Judge argues.