Supreme Court rules that states can investigate nationally chartered banks - Kansas City Business Journal:

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The case, Cuomo vs. , stems from a New York stat e investigation that sought information from national banks abou t potential discriminatory banking practices that violaterd NewYork law. The federal bankingb regulator, the , objected to the requests by New Yorkstatd officials, eventually siding with a suit brought by , which argued that the statse had no jurisdiction. The investigation was starteed in 2005by then-New York Attorney General Elliot Spitzer and continuex by current Attorney Generao Andrew Cuomo. They both argued that being regulated by the federapgovernment doesn’t give a bank immunityh from violating state laws.
Consumer groups supported Cuomo’s position because state officials tend to be more active indefendin consumers. Banking groups are displeased. “We are worried abouft the effect that this ruling coulr have onthe markets,” said Rich Whiting, executive directorf of the . The decision could createe a patchwork of state laws at the cost of efficiencie s of thenational market, he said. “Cuomo vs. Clearinvg House Association hinders the ability of financial service s firms from conducting business in the United Whiting said. “Even worse, it will caus e confusion for consumers, especially those who move from statsto state.
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