The ‘Chevron Two-Step’: Banks and Credit Unions Can’t Resist

The U.S. Supreme Court is considering overturning the “Chevron standard,” a rule that has long dictated how congressional, judicial and regulatory agency actions interplayed. The standard allowed for federal courts to defer to a regulatory agency’s interpretation of a statute it obeys. While the Supreme Court has not cited Chevron in recent years, lower courts have. The questioning of justices during recent arguments involving fisheries suggests the court may be poised to end the standard. If it does, it could have significant implications for the banking industry, which is also subject to broadly worded laws. The demise of Chevron could prompt a surge in challenges from banks questioning the reach of the regulatory agencies. The industry, however, would likely be wary of overturning less restrictive interpretations of laws.