Ryan Comments on New York Court Ruling
Statement by John Ryan, President & CEO, Conference of State Bank Supervisors
Washington, D.C. -- “State financial regulators are pleased by the decision today made by the U.S. District Court for the Southern District of New York, ruling that the New York Department of Financial Services’ (DFS) case against the OCC is ripe for consideration and should proceed, rejecting the OCC’s claims to the contrary. As DFS Acting Superintendent Linda Lacewell said, ‘this is a resounding triumph for consumers and the regulated banking industry.’
“As to the similar litigation CSBS has with the OCC, we continue to believe that the OCC has acted outside its congressional mandate in seeking to grant national bank charters to nonbank entities. Indeed, the Court said today that 'receiving deposits is an indispensable part of the business of banking.'
"We look forward to our case, as well as New York’s, resulting in a clear message that the OCC does not have the authority to preempt state laws, including for consumer protection, by unlawfully expanding its mandate.”