Justice May Hear Challenge to SEC Judges, But Not Go Far

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[quote] Jeffrey Lubbers, professor at American University’s Washington College of Law, said whatever the Supreme Court decides, there could be consequences the defense bar won’t like.

For example, having political appointees to the commission essentially in charge of ALJ hiring decisions may add a political tinge to the process. And easing some of removal protections that ALJs currently enjoy raises the prospect of judges losing their jobs if the commission doesn’t like how they ruled on a particular matter, he said.

“Their attack on the appointment and removal of ALJs has the perverse effect of making the ALJs less independent and more subservient to political interests, which you'd think is the reverse of what the SEC bar would want,” Lubbers said.

“They’re kind of spiting themselves by making these cases,” he said.

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