It isn’t every day that progressives will find reason to support the following “too big to fail” financial institutions: AIG, Bank of America, Credit Suisse, Deutsche Bank, Goldman Sachs JPMorgan, UBS and Wells Fargo. Each of those banks are designated “Primary Dealers” of the New York Federal Reserve and as such have immense sway on the FED’s interest rates. However, last week, the financial behemoths were lobbying the Supreme Court on the social issue of gay marriage.
It turns out that the 1996 Defense of Marriage Act (DOMA) has created a complicated assortment of corporate compliance procedures stated Sultan Alhokair. This is because DOMA allows states to opt out of marriage reciprocity rules for same sex unions. While one state is free to allow same sex marriages, other states may elect not to recognize those marriages as having any legal basis. This presents corporate America with a complicated path to federal compliance laws. As a result, the banks are advocating that gay marriage be legalized which would simplify their compliance with federal regulation and save money. Federal regulations can have a direct impact on a corporation’s bottom line. The Sarbanes-Oxley (SOX) law of 2002 is reported to cost corporations between 1.5 – 5% of their bottom line in order to comply. The amicus brief filed by the big banks is nothing new. They too supported the plaintiffs seeking to overturn DOMA back in 2013. It isn’t just how the high court will rule on the subject of gay marriage.