Todd Phillips
@tphillips.bsky.social
2.7K followers 200 following 450 posts
Banking and administrative law. Independent policy consultant. Future Robinson College. Fellow Roosevelt Institute. Fmr CAP, FDIC, ACUS.
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tphillips.bsky.social
Politico really undersells how legally bonkers this argument is.

RIFing employees is agencies' individual decisions, but is pursuant to the President's inherent constitutional authority.
tphillips.bsky.social
He doesn't even have to negotiate. He and the other Republicans can just nuke the filibuster, as they've done for practically everything else.
tphillips.bsky.social
But will the courts? Tbd...
tphillips.bsky.social
To be clear, we need not choose between progressive policies and independent regulators; independence does not mean serving the interests of regulated industries over those of the public. It simply means being able to act without fear or favor.
tphillips.bsky.social
I argue in Democracy Journal that regulatory independence is a progressive value. It's necessary for our high standard of living and serves as a rejection of backroom dealmaking and governing on the basis of campaign donations and bribes.

Read it here: democracyjournal.org/arguments/am...
America Needs Independent Regulators
A future Democratic President will be tempted to use power like Trump. That would be a mistake.
democracyjournal.org
tphillips.bsky.social
@jamellebouie.net, please do a column about how the same logic applies to other independent agencies, like the Nuclear Regulatory Comm'n. Though everyone is focused on the Fed, I spoke to a former NRC chair who told me that they're scared of a Fukushima disaster on US soil b/c of the UET.
jamellebouie.net
to me, the “column” is less a form than an opportunity (and a challenge). you’re telling me i have as much space as i’d like to make an argument about anything i’d like to an audience inclined to pay close attention? well let’s see if they’ll read 2000 words on democratic legitimacy. (gift link)
Opinion | This Is About So Much More Than Lisa Cook
www.nytimes.com
tphillips.bsky.social
If you're Hill staff (D or R) you're worried about losing minority party commissioners, please reach out. @nicholasbednar.bsky.social and I are speaking staff about legislative language that we think could mitigate some of the losses from the Supreme Court. We'd love to speak with you, too.
tphillips.bsky.social
If they lose on for cause, they're not going to go for broke is my point.
tphillips.bsky.social
Very interesting that the Administration's application to the Supreme Court makes clear it is not challenging the constitutionality of the Fed's for cause removal protections. This won't be a chance to directly overrule Humphrey's.
tphillips.bsky.social
Sure, sure. To be clear, I have no idea. I filed a brief in Vullo on the side of Vullo, so that shows just how much law I know.
tphillips.bsky.social
FWIW, on remand the 2d Circuit held that Vullo had qualified immunity. I'm not a QI scholar, but I could imagine Carr getting it here, too.
tphillips.bsky.social
Sure sure. I'm not sure they care. Everyone was telling them that removing a fed Governor would cause markets to go haywire, and we're seeing that's not the case. Will they realize that it's because markets see Cook as still serving? I don't think so.
tphillips.bsky.social
Why does that put them in a pickle? The majority seems content with declaring what the law is but preventing courts from getting involved adjudicating cases involving them.

Applied here, the argument is that the for cause removal exists, but it's not for courts to adjudicate.
tphillips.bsky.social
All good. I don't tackle exactly with the problem you're wrestling with, but I do argue that courts explicitly went against the congressional intent of having strong, progressive banking laws when they gave Chevron defence to the OCC and Fed.
tphillips.bsky.social
If it were me, I'd go back to what the Court said in Chevron (the 1984 case, not the subsequent glosses): If judges really don't know, defer to the agency. But if judges have a sense of what Congress actually wanted, then go with what Congress wanted. Subsequent holdings (eg Mead) muddled things.
tphillips.bsky.social
Sry, was on a very long phone call.

I think we must distinguish b/t interpretations of statute and the Constitution. NBA interpretations don't concern me b/c Congress can change the law, whereas if SCOTUS says removal protections are unconstitutional, there's nothing Congress can do about it.
tphillips.bsky.social
Overruling an agency's interpretation of a statute's purpose is not the same thing as juristocracy.
tphillips.bsky.social
Why are these two--juristocracy or granting Chevron deference--the only options?

I don't think you can read, e.g., Bankers Trust I and come away with the conclusion that it was a juristocratic opinion. They just realized that Congress wanted to address the causes of the Great Depression.
Reposted by Todd Phillips
tphillips.bsky.social
I'm up in @bloomberglaw.com arguing that the recent push to reshape bank supervision, and Matters Requiring Attention in particular, "is the wrong remedy, resulting from [a] misdiagnosis of MRAs’ problems."
tphillips.bsky.social
I offer two changes regulators should make to make the distinction clear.

1) Replace the the name "Matters Requiring Attention with “Supervisory Recommendations” (the FDIC already does this).

2) The FBAs should bring enforcement actions more quickly when problems arise.
tphillips.bsky.social
MRAs are separate from legal violations, and conflating the two (by both banks and regulators) undermines the role played by bank supervision as a second set of eyes to support bankers in conducting safe and sound banking.