Full-court press

4 May 2017 By Reynolds Holding Follow @holdingren

The U.S. regulator has been using in-house tribunals to run up the score against Wall Street targets. A rare loss last month and a new bill in Congress, however, may push more cases into federal court, where legal safeguards are stronger. Fairer hearings are worth giving up a few wins.

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A Republican plan to loosen financial regulation and replace the Dodd-Frank Act was scheduled for a vote as early as May 4 in the House Financial Services Committee. The committee's GOP majority was expected to approve the Financial Choice Act and move it to the full House for consideration despite stiff Democratic opposition.

Last year, the same House committee passed a similar bill on a 30-26 vote, with Democrats refusing to introduce amendments and moving to cut off debate.

On May 3, the full U.S. Court of Appeals in Denver rejected the Securities and Exchange Commission's request to reconsider a ruling that the regulator's in-house administrative judges are appointed in violation of the U.S. Constitution.

In December, a three-judge panel of the court ruled in favor of Colorado businessman David Bandimere, who also claimed that the SEC's administrative court system unfairly deprives defendants of jury trials and other legal rights.

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