Could it be true? Is the sky falling? Did Tony Scalia really just side with the liberals in a major case? (Legal explanation here.)

WASHINGTON — In a rebuke of the Bush administration, the Supreme Court ruled Monday that a federal bank regulator erred in quashing efforts by New York state to combat the kind of predatory mortgage lending that triggered the nation's financial crisis.

The 5-4 ruling by the high court was unusual. Justice Antonin Scalia, arguably the most conservative jurist, wrote the majority's opinion and was joined by the court's four liberal judges.

The five justices held that contrary to what the Bush administration had argued, states can enforce their own laws on matters such as discrimination and predatory lending, even if that crosses into areas under federal regulation.

Justice Clarence Thomas, writing for the four dissenters, argued that laws dating back to the nation's founding prevent states from meddling in federal bank regulation. He was joined by Chief Justice John G. Roberts and justices Anthony Kennedy and Samuel Alito.

The ruling angered many in the financial sector, who fear it'll lead to a patchwork of state laws that'll make it harder for banks and other financial firms to take a national approach to the marketplace.

Poor babies. My heart just bleeds for them. Why, it might make it even harder to throw 84-year-old widows out onto the street!

"We are worried about the effect that this ruling could have on the markets," said Rich Whiting, general counsel for the Financial Services Roundtable, a trade group representing the nation's 100 largest financial firms, in a statement. The decision "hinders the ability of financial services firms from conducting business in the United States. Even worse, it will cause confusion for consumers, especially those who move from state to state."

Oh, the markets! The sky is falling! Quick, throw the banks some money to help! Oh wait, we tried that already...

Stephen Ryan, a partner at McDermott Will & Emery, said the decision "will have a significant, negative impact on the ability of a national bank to offer a financial product uniformly throughout the country."

In a statement, Ryan, who's brought suits against state enforcement, predicted "a crazy quilt of conflicting legal instructions" and a "confusing situation of shared enforcement responsibilities for financial services."

Ha ha ha! Mr. Ryan, have you ever read the small print on an adjustable rate mortgage?

But wait, apparently it's not as bad as the banks claim:

Some of the industry's allies said yesterday's decision is hardly disastrous for banks, given that state officials will not have the power to demand documents or compel executives to submit to questioning without a court order.

"Obviously there's going to be some additional burden on the big banks," said Seth Galanter, of counsel at the law firm of Morrison & Foerster, who filed a brief on behalf of former comptrollers of the currency. "But civil litigation has always been available to private parties. This just adds state attorneys general to the list of groups that can sue."

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Judge Sonia Sotomayor describes her long journey from a housing project in an urban Puerto Rican neighborhood to the memorable day she was given a private tour of the White House, when she was a newly appointed federal judge.

An informative 2004 video from the Law School Admission Council, their Believe and Achieve: Latinos in the Law series. As with President Obama, Sotomayor champions education as the key to lifting her above her humble beginnings.

Now watch the wingnut fun begin! Sotomayor, a child of the Bronx, has already been the focus of attacks from the librul media, so we can only speculate as to how much worse the right-wing assaults will be. She'll be seen as slightly to the left of Abbie Hoffman by the time they're done with her:

President Obama this morning will announce that U.S. appeals court Judge Sonia Sotomayor of New York is his pick to replace retiring justice David Souter on the U.S. Supreme Court, White House officials said.

The 10:15 a.m. announcement will be made at the White House, before Obama leaves Washington for a two-day trip to California and Las Vegas that will focus mostly on fundraising events.

The president finalized his deliberations at Camp David over the weekend, and notified his staff this morning.

Media Matters did a roundup of the Sotomayor attacks a few weeks back, including the hit job done by a New Republic writer:

Despite the glaring flaws, Rosen's assessment of Sotomayor was widely adopted by other media figures.

Mark Halperin, Time's conventional-wisdom maven, announced "Jeff Rosen Raises Warning Flags on Sotomayor" and described "Jeff" Rosen as "the New Republic's legal eagle." (What of Rosen's thin sourcing and dishonest quoting? Who cares! It's Jeff! He's a legal eagle!) The Atlantic's Marc Ambinder touted Rosen's piece as a reflection of "the respectable intellectual center." (Ambinder's colleague, Ta-Nehisi Coates responded: "You don't get to be the 'respectable intellectual center' and then practice your craft in the gossip-laden, ignorant muck. Not for long anyway.")

If the "respectable intellectual center" approached the prospect of a Sotomayor nomination by doctoring quotes in order to trash her intelligence, you might wonder what the disreputable fringe did. Well, National Review's John Derbyshire and Mark Hemmingway described her as "dumb and obnoxious," but they weren't really moving the ball forward in the anti-Sotomayor campaign; they were just interpreting Rosen's work.

Fox News' Andrew Napolitano told listeners on his radio show that Sotomayor "has a reputation for not being a very hard worker" -- like Rosen, citing anonymous law clerks to back up the claim.

Even David Letterman got in on the act. Here's Bob Somerby, describing Letterman's Sotomayor sketch:

Letterman's clip was openly racial/ethnic, a throwback to what once seemed to be an earlier day. With it, he gave viewers a throwback first impression of a sweaty, crazy, yelling jurist -- of a woman who graduated summa cum laude from Princeton in her real life, among other acts of distinction. But this astounding bad judgment by Big Humor Dave followed an act of grotesque judgment by the New Republic's Jeffrey Rosen. Rosen authored a gruesome post built on anonymous sources which -- let's be honest -- openly trafficked in racial stereotypes.

Dumb. Lazy. Temperamental. It's enough to make you wonder how she made it from the South Bronx to Princeton, Yale, and a federal judgeship. And remember: She didn't get there the George W. Bush way. You know many lazy, stupid people who win Princeton's highest academic prize?

Worst of all, there's no reason to think that the treatment Sonia Sotomayor received from the media over the past week will stop with her. The coverage of Sotomayor has clearly been built at least in part on gender and racial stereotypes, so we can probably expect similar coverage of other women and minorities who are mentioned as possible nominees.

Take that, Senator Sessions. (And bet you twenty quid those judges vote Tory.)

And a warm congratulations to Marcy Wheeler on her well-deserved Hillman Award for investigative journalism. Bloggers rock, and they need our support.

Open thread below...

Crow from MST3K has a little advice for the President's SCOTUS Search Committee. Open Thread below...

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That sound you hear is wingnuts weeping across the country.

AP:

The Supreme Court has turned down an emergency appeal from a New Jersey man who says President-elect Barack Obama is ineligible to be president because he was a British subject at birth.

The court did not comment on its order Monday rejecting the call by Leo Donofrio of East Brunswick, N.J., to intervene in the presidential election. Donofrio says that since Obama had dual nationality at birth _ his mother was American and his Kenyan father at the time was a British subject _ he cannot possibly be a "natural born citizen," one of the requirements the Constitution lists for eligibility to be president.

I'm with Anonymous Liberal: What, exactly, is the endgame here? If someone proved beyond the shadow of a doubt that President-elect Obama wasn't born in Hawaii, where do we go form there? It's pretty clear that the people who are doing the questioning have no clue.

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Ohio Republicans were just handed a defeat by the Supreme Court for the voter registration controversy:

The Supreme Court is siding with Ohio's top elections official in a dispute with the state Republican Party over voter registrations.

The justices on Friday overruled a federal appeals court that had ordered Ohio's top elections official to do more to help counties verify voter eligibility.

Secretary of State Jennifer Brunner, a Democrat, faced a deadline of Friday to set up a system to provide local officials with names of newly registered voters whose driver's license numbers or Social Security numbers on voter registration forms don't match records in other government databases.

We will have video shortly of Pete Williams explaining the decision on MSNBC.