Preemption of State Banking Regulation
In 2003, the OCC proposed regulations to preempt virtually all state banking and financial services laws for national banks and their diverse range of non-bank, corporate operating subsidiaries. Despite opposition from the National Conference of State Legislatures, the OCC's regulations went into effect. In Watters v. Wachovia Bank, N.A. (2007), the United States Supreme Court validated the preemption of state regulations by the OCC, ruling that the OCC, not the states, has the authority to subject national banks to "general supervision" and "oversight":
...State regulators cannot interfere with the business of banking by subjecting national banks or their OCC-licensed operating subsidiaries to multiple audits and surveillance under rival oversight regimes.
In Cuomo v. Clearing House Association, L. L. C. (2009), the Court clarified its decision in Watters, stating that federal banking regulations did not pre-empt the ability of states to enforce their own fair-lending laws, as "'general supervision and control' and 'oversight' are worlds apart from law enforcement," and therefore states retain law enforcement powers but have restricted "visitory" powers over national banks.
Read more about this topic: Office Of The Comptroller Of The Currency
Famous quotes containing the words state, banking and/or regulation:
“The longer a woman remains single, the more apprehensive she will be of entering into the state of wedlock. At seventeen or eighteen, a girl will plunge into it, sometimes without either fear or wit; at twenty, she will begin to think; at twenty-four, will weigh and discriminate; at twenty-eight, will be afraid of venturing; at thirty, will turn about, and look down the hill she has ascended, and sometimes rejoice, sometimes repent, that she has gained that summit sola.”
—Samuel Richardson (16891761)
“One of the reforms to be carried out during the incoming administration is a change in our monetary and banking laws, so as to secure greater elasticity in the forms of currency available for trade and to prevent the limitations of law from operating to increase the embarrassment of a financial panic.”
—William Howard Taft (18571930)
“Nothing changes my twenty-six years in the military. I continue to love it and everything it stands for and everything I was able to accomplish in it. To put up a wall against the military because of one regulation would be doing the same thing that the regulation does in terms of negating people.”
—Margarethe Cammermeyer (b. 1942)