Valerie Hletko Quoted in Bloomberg BNA Article, "U.S. Solicitor General's Office Will Join SCOTUS Argument on ECOA and Guarantors"
September 14, 2015
Valerie Hletko was quoted in Chris Bruce's Bloomberg BNA article, "U.S. Solicitor General's Office Will Join SCOTUS Argument on ECOA and Guarantor," on September 14, 2015.
Valerie L. Hletko, a partner with Buckley Sandler in Washington, D.C., Aug. 31 said the
case is important on several levels.
First, she said, is the Eighth Circuit’s holding that Regulation B goes too far by including spousal guarantors, who did not themselves apply for credit, as applicants.
‘‘If lenders cannot obtain guaranties from the spouses of married business owners (or are vulnerable to challenges about the validity of those guaranties) their ability to value the assets of commercial debtors is impaired,’’ Hletko said in an Aug. 31 e-mail to
Bloomberg BNA. ‘‘This is different in kind from the policy behind protecting full access to credit for married women,’’ she said.
Hletko also said the ruling shows that courts are being less deferential to agency discretion under a twostep inquiry established by a 1984 U.S. Supreme Court ruling involving Chevron Corp.
The Solicitor General’s involvement will also have an impact, according to Hletko.
‘‘The participation of the Solicitor General suggests that the government will promote both a broad interpretation of Regulation B and robust Chevron deference more generally,’’ she said.
Reproduced with permission from BNA's Banking Report, 105 BBR 351 (Sept. 14, 2015). Copyright 2015 by The Bureau of National Affairs, Inc. (800-372-1033) http://www.bna.com