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21-Jul-2017 07:18

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In the OLA case especially, a suit could turn on interpretations of bank balance sheets — hardly ever a welcome exercise.To the extent that a crisis case would thus require a court to adjudicate in an area where it lacks capacity, perhaps removing courts from the picture is less concerning than it first appears.Constitutional rights should be relaxed, so the executive can move forcefully against the threat.If dissent weakens resolve, then dissent should be curtailed.thus raises serious doubts about the viability of OLA challenges, ex ante and ex post.

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And others more practically object that even ex post monetary compensation may prove insufficient; there’s no judicial power to reverse a bank run.

Thus applied, the case could severely crimp chances for constraining the OLA in the courts, paralleling a larger judicial trend of limiting adjudication for similar crisis powers.



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