Ruling Limits State Control of Big Banks

New York Times:

"The mortgage lending subsidiaries of national banks are immune from state regulation, the Supreme Court ruled on Tuesday in a decision that upheld a controversial regulation issued six years ago by the office of the comptroller of the currency, the chief federal bank regulator.

The attorneys general and bank regulators of all 50 states had urged the justices to find the regulation out of bounds, either as a misinterpretation of the National Bank Act or as a matter of constitutional federalism. Consumer groups told the court that a decision upholding the federal agency’s claimed power of pre-emption would displace state oversight at a time when the mortgage lending industry urgently needed close supervision."