High Court Says States Can Go After Federal Banks

Law360, New York (June 29, 2009, 12:00 AM EDT) -- The U.S. Supreme Court on Monday ruled that state authorities can prosecute nationally chartered banks for violations of state law, saying that state consumer protection laws for financial products are not preempted by federal regulations.

The decision in Cuomo v. the Clearing House Association LLC opens the door for state attorneys general and bank regulators to enforce state laws on federal banks and reverses a 2000 rule established by the U.S. Office of the Comptroller of the Currency intended to centralize bank regulation.

The decision also...
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