Securities Industry Ass'n v. Board of Governors of the Federal Reserve System

This case involves a challenge to the efforts of a state commercial bank to enter the business of selling third-party commercial paper. The Board of Governors of the Federal Reserve System (Board) concluded that such activity by state member banks is not prohibited by the Banking Act of 1933, ch. 89, 48 Stat. 162 (commonly known as the Glass-Steagall Act) because commercial paper is neither a “security” nor a “note” within the meaning of that Act and therefore falls outside the Act’s proscriptions. The District Court disagreed with the Board, but the Court of Appeals deferred to the Board’s…