Cary Coglianese, a law professor and regulatory expert from the University of Pennsylvania, discusses the implications of Trump's recent executive order empowering the president over independent agencies like the SEC. Steven Church, a Bloomberg bankruptcy reporter, dives into Johnson & Johnson's attempt to navigate thousands of lawsuits through bankruptcy. The conversation reveals concerns about agency autonomy and the complexities facing victims of corporate decisions, especially as J&J seeks a $9 billion settlement amidst ongoing legal battles.
The executive order signed by President Trump centralizes power over independent agencies, challenging their traditional autonomy and expertise.
Johnson & Johnson's bankruptcy trial seeks to resolve thousands of legal claims through a settlement, highlighting the complexities of corporate litigation.
Deep dives
Trump's Executive Orders and Centralization of Power
The president has signed a substantial number of executive orders, significantly more than his predecessors during their respective early terms. These executive orders primarily serve as directives rather than definitive indicators of success, which has raised concerns about their effectiveness. A notable executive order aims to centralize powers from independent agencies into the White House, allowing the president to directly influence the rulemaking and policies of agencies like the SEC and FTC. This move appears to diminish the independence traditionally afforded to these agencies by Congress, potentially leading to increased political influence over regulatory decisions.
Impact of Trump's Executive Order on Independent Agencies
The recent executive order fundamentally shifts the oversight of independent agencies by enforcing executive branch review processes that were previously limited to non-independent agencies. This change treats independent agencies as if they are no longer autonomous, despite their creation by Congress to function independently of political pressures. Historically, independent agencies have been structured to prevent arbitrary dismissals by the president, thereby maintaining a level of protection against political whims. The order's implementation raises questions about whether these agencies can maintain their expertise and impartiality when subjected to concentrated political scrutiny.
Challenges Posed by the Executive Order to Regulatory Autonomy
Implementing the executive order poses various practical challenges that could undermine the operational efficacy of independent agencies. The requirement for agencies to seek White House approval for budgets, regulations, and legal interpretations could stifle their ability to function independently and make decisions based on expertise. Moreover, the order necessitates that independent agencies provide a liaison to the White House, which could complicate decision-making processes within multi-member commissions. This increased oversight may hinder the agencies' responsiveness to unique regulatory needs, particularly in complex sectors like finance, where expertise is critical.
The Potential for Legal Challenges and Supreme Court Implications
The implications of this executive order may lead to significant legal challenges, particularly concerning the balance of power between the branches of government. Some experts speculate that the order aims to lay the groundwork for the Supreme Court to endorse a more presidential-centric understanding of executive authority, potentially overturning longstanding precedents. There are concerns that if the Supreme Court were to validate the order's premise, it could open the floodgates for future administrations to exert similar control over independent agencies. Such shifts in judicial interpretation could set dangerous precedents, eroding the checks and balances designed to protect the independence of regulatory bodies.
Cary Coglianese, a law professor who directs the University of Pennsylvania Carey Law School’s program on regulation, discusses President Trump’s executive order giving him control over independent agencies. Steven Church, Bloomberg bankruptcy reporter, discusses J&J’s attempt to end thousands of cases in a bankruptcy settlement. June Grasso hosts.