Fintech Takes S8 E6: Bank Nerd Corner: What is the BSCA and What Can It Do?
Aug 14, 2024
In this episode, Jim Bergin, a seasoned partner at Arnold & Porter with nearly two decades at the Federal Reserve, dives into the intriguing world of banking regulations. He clarifies the origins and evolution of the Bank Service Company Act (BSCA) since the 1960s. The trio also tackles recent Supreme Court decisions and their potential ramifications for banks and fintechs. Kiah shares her thoughts on brokered deposits, questioning why the FDIC is still focused on classifying fintech deposits rather than adapting to modern financial behaviors.
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Jim Bergin's Fed Experience
- Jim Bergin joined the Fed in 2005, initially unaware of central banking's complexities.
- The 2008 financial crisis provided invaluable insights into bank regulation's intricacies.
Loper Bright Overturns Chevron
- The Supreme Court's Loper Bright decision overrules Chevron deference, limiting agencies' interpretive power.
- Courts will now interpret statutes directly, potentially impacting regulatory challenges.
Jarkesy Limits SEC Powers
- The Jarkesy decision limits the SEC's use of administrative law judges, potentially impacting regulatory enforcement.
- Individuals now have the right to a jury trial in certain SEC cases.