Industry News

National banks can’t ignore all state rules

Federal regulator clarifies state role in new banking regulation
Published on Mar 3, 2004

National banks should respond quickly and fairly to consumer complaints passed along by state regulators, the Office of the Comptroller of the Currency said this week. The new guidance clarifies the previous assertion that the federal regulator has precedence over state banking rules. "We expect that the paramount concern of national banks and their subsidiaries is to do the right thing for their customers," said Julie Williams, chief counsel and first senior deputy Comptroller. "While the OCC has certain exclusive regulatory, supervisory and enforcement authority over national banks, that does not mean that national banks cannot and should not accept information from state agencies, and other sources, and take appropriate actions to address their customers' concerns," she added. The OCC has been under fire from state banking and consumer groups since it imposed a federal preemption rule last month enabling national banks to skirt state banking laws. The groups claimed the lack o...

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