Washington, D.C. -- Conference of State Bank Supervisors President and CEO John W. Ryan issued the following statement today in response to the New York Department of Financial Services lawsuit against the Office of the Comptroller of the Currency (OCC), which challenges the OCC’s authority to create a special-purpose national bank charter for fintech and other nonbank financial services companies.
“CSBS strongly supports the lawsuit filed today by the New York Department of Financial Services against the Office of the Comptroller of the Currency (OCC). The OCC does not have the authority to issue federal charters to non-banks, and its unlawful attempt to do so will harm markets, innovation and consumers.
“In order to protect consumers and taxpayers, and to ensure fair and open market competition, CSBS filed our own challenge against the OCC last month, seeking to prevent the OCC from moving forward with this unauthorized expansion of its authority.
“Furthermore, the OCC proposal threatens state sovereignty and strong state consumer protection laws. State regulators already supervise a vibrant financial services marketplace that includes non-banks and banks. And where there are opportunities to further modernize state regulation of financial services providers, including fintechs, state regulators are committed to doing so through our recently launched Vision 2020 initiative to make the state system of financial regulation more efficient while protecting consumers and the financial system.”