In the 1942 case Department of Banking of Nebraska, Receiver v. Pink, Superintendent of Insurance of the State of New York, the U.S. Supreme Court ruled in favor of Pink. The dispute arose when a Nebraska bank failed and was taken over by a state receiver who then sought to recover assets from an insurance company that had been liquidated in New York. The court held that full faith and credit must be given to public acts, records and judicial proceedings from another state under Article IV Section 1 (the Full Faith and Credit Clause) which includes decisions made by administrative agencies acting within their authority such as those related to insurance insolvency proceedings conducted in one state being recognized by other states where claims may arise against insolvent insurers' estates.

In the dissenting opinion for the case Department of Banking of Nebraska, Receiver v. Pink, Superintendent of Insurance of the State New York (1942), Justice Frankfurter argued that federal law should not supersede state law in this instance. He contended that while Congress has broad power to regulate commerce and banking, it does not have unlimited authority to intrude upon areas traditionally governed by state laws such as insurance regulation. In his view, Congress had not clearly indicated an intention to preempt state insolvency laws with respect to national banks; therefore these matters should be left under states' jurisdiction. Furthermore, he emphasized on respecting principles of federalism and maintaining a balance between federal and state powers.