Welcome to the Libertarian Podcast from the Hoover Institution.

I'm your host Tom Church and the Libertarian is Professor Richard Epstein.

Richard is the Peter and Kirsten Bedford Senior Fellow here at the Hoover Institution.

He is the Lawrence A Tisch Professor of Law at NYU and is a senior lecturer at the University of

Chicago.

Today, the administrative state, the SEC, and questions about due process.

Richard, the Fifth Court of Appeals ruled in Cherkese versus SEC that the

SEC isn't allowed to be judge, jury, and prosecutor in major cases in its own courts.

Now you say in your column that the SEC had the full run of the show, is that really that big of a deal?

I mean what's wrong with administrative agencies of running their own court systems?

Namo UDX and Kowza, you, that is nobody should be a judge in his own case.

What happens is if you are the person who

formulates the rules, then you give up a complaint to it. Then what you do is

you appoint the very judges to hear it, having the power to remove

them if you don't want your lie.

Then the very people who formulated the policies are the appellate judge in the case, all of this

before you get to an original court, what happens is the risk of error and bias is simply enormous.

Now, the thing to understand about this is not only of these errors enormous but the ability of

getting judicial constructive protection at the judicial level after all

this goes through literally means that you have to spend several years, hundreds of thousands of dollars on these defenses, genuine situations of emotional turmoil, the difficulty of having to figure out whether or not you can maintain yourself in your trade or your business as long as this thing is going on, understanding that every bank from which you want to make a loan is going to turn around to you and start to say, you know, you've got a material

lean on your property because if they decide to foreclose on your ability to do certain occupations or to

oppose a fine on you, their fines and their restrictions will take priority or anything that we want to do.

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