No attorney likes losing a high-profile case, particularly when he is the government's top lawyer. But if Solicitor General Seth P. Waxman is bitterly disappointed over his Supreme Court loss in the credit union case, he's hiding it beneath a veneer of professional distance.
"In the Supreme Court's view, we were wrong," Mr. Waxman told a group hosted by the Bankers Roundtable and the Support Group for Modern Banking on March 4.
It couldn't have helped that Mr. Waxman's opponent in the AT&T Family Federal Credit Union case, Michael S. Helfer, was sitting in the audience.
The solicitor general explained the concept of "judicial deference"-the tendency of courts to defer to regulatory interpretations of statutes. Though banking regulators have won four such cases before the high court in recent years, the National Credit Union Administration struck out. "They didn't defer," Mr. Waxman said pithily.
As humbling as that admission may have been, Mr. Waxman can at least take comfort that he wasn't speaking before a credit union group.
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What to do about credit union membership limits was the talk of another conference last week as well.
Rep. John J. LaFalce promoted his vision for reform at a meeting of America's Community Bankers. The New York Democrat said occupation-based credit unions ought to be able to continue serving existing members, but should be barred from adding employee groups above a certain, unspecified size.
Geographic restrictions should be placed on most credit unions, he said, and those with assets exceeding $25 million ought to comply with the Community Reinvestment Act.
"The common bond must not be all living human mammals," the House Banking Committee's top Democrat said. "The common bond ought not to be, 'Well I have a telephone, and you have a telephone.'"
Sen. Richard C. Shelby, R-Ala., said any credit union legislation should include an exemption from the CRA for banks with less than $250 million of assets. The 250 conference attendees applauded heartily for Rep. LaFalce, but lightly for Sen. Shelby.
Rep. W.J. "Billy" Tauzin, R-La., may have brought the wrong speech to the ACB meeting.
The No. 2 Republican on the House Commerce Committee sermonized on his pet topic-a plan to abolish the Internal Revenue Service, which he said is "drunk with power," and institute a national tax on retail consumption instead of income.
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John D. Hawke Jr. as the next comptroller of the currency?
Most people have been figuring chief counsel Julie L. Williams will simply step up to acting comptroller when Eugene A. Ludwig wraps up his five-year term April 3.
But then a rumor started spreading that Mr. Hawke-a premier banking lawyer before becoming Treasury under secretary-wanted the job. The rumor would not have caught fire if everyone asked about it did have such cagey responses. Mr. Hawke clearly did not want to discuss the prospect, saying "the process (of selecting a replacement) is in the early stages."
Mr. Ludwig confirmed that he has talked with White House officials about his successor, but refused to name names.
Speaking of leaving office, acting Federal Deposit Insurance Corp. Chairman Andrew C. "Skip" Hove Jr. last week denied reports that he is ready to retire. Mr. Hove said he intends to serve out the remaining two- plus years of his term even if Congress confirms Hawaii banking lawyer Donna Tanoue as the permanent chairman.
